Technical Analysis:
Nasdaq can retrace towards 19000 zones and we have daily FVG above from there is we get any MSS we can look for selling opportunities. We have equal lows on weekly chart around 17000 so price might push towards those areas.
Fundamentals:
A look at the day ahead in U.S. and global markets from Mike Dolan
U.S. stocks look to have weathered the early September squall for now but interest rate speculation and ebbing bond yields now take center stage as evidence mounts of slowing U.S. labor market.
Futures markets now see almost a 50-50 chance of a 50 basis point Federal Reserve rate cut this month and two-year Treasury yields (US2YT=RR) plumbed 3.75% on Thursday for the first time in 16 months.
In a sign that the Treasury market suspects the Fed may be late in getting across the weakening employment picture, the gap between two-year yields and the Fed policy rate is at its widest since 1981.
And after more than two years of an inverted 2-to-10 year Treasury yield curve, the gap has been closed to zero. And although traditional market signals about this peculiar economic cycle have misfired repeatedly, that yield curve measure has historically turned positive just before the onset of recession.
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