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S&P 500 futures are currently trading at 2922.50- lower by 0.55% as compared to the previous close. The index Futures, however, closed in positive territory in the last trading session.
In the cash markets, the broad market index inched down 0.47% to 2,924.29 at the time of writing. U.S. equities traded lower today amid renewed trade war concerns.
A report published overnight disclosed that Washington is delaying a decision about licenses for U.S. companies to restart trade with Huawei Technologies. Stocks of Chip companies dropped on the news.
Skyworks solutions and Micron Technology lost 2.2% and 1.9% respectively at the time of writing.
U.S. President Donald Trump said earlier today that Washington will not do business with Huawei. President Trump also said that the U.S. is not ready to reach a trade deal with China.
The U.S. President said earlier this month that he would slap an additional 10% tariffs on $300 billion worth of Chinese goods starting from 1st September.
Eight of the eleven major index’s sectors were trading lower, with the technology sector declining the most.
On the other hand, Defensive sectors including real estate and utilities were set to post a weekly gain this week.
IT and consulting services provider DXC Technology crashed 30.89% after the company lowered its full-year profit and revenue forecast.
Activision Blizzard stocks declined 2.7% after the company’s third-quarter revenue and profit expectations missed consensus estimates.
The S&P 500 recorded its biggest one-day sell-off of 2019 on Monday (Aug 05). The broad market index was down 1% for the week through late Friday morning and set for a second consecutive weekly decline.
The benchmark index recorded 38 new 52-week highs and 9 new lows.
On the economic front, PPI (MoM) for July released earlier today came in at 0.2%. The index change was in line with market expectations.
On the technical front, the RSI is currently at 45.07% and suggests that the market can continue trading sideways. The current price is below the MA20. The current price is below the middle line of the Bollinger bands and is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion- Limit Sell At 2928, Take Profit At 2914, Stop Loss At 2935