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US Stock Market Shakes Off Recent Losses - is This a Temporary Top or a Momentary Dip?

US Stock Market Shakes Off Recent Losses - is This a Temporary Top or a Momentary Dip?

US Futures and European Stocks Recover After a Sharp Fall

On Thursday, US futures experienced a slight resurgence, paralleling a slightly stronger tone in Europe. This comes after a steep drop on Wall Street in the aftermath of a hawkish Federal Reserve meeting and underwhelming earnings reports from tech giants Alphabet (NASDAQ:GOOGL) and Advanced Micro Devices (NASDAQ:AMD), causing a dent in the A.I. momentum.

S&P 500 Sees Worst Day Since September

Extraordinary declines were seen across major indexes like the Dow and Nasdaq following the S&P 500's worst day since last September. Several short-term support levels succumbed in the carnage, with the Dow Jones establishing a bearish trend at its pinnacle, and Nasdaq maintaining its fall from severely overbought situations.

Bullish or Bearish Outlook for Equity Indexes?

Investors now face the challenging question of whether this week’s fall will culminate in at least a temporary peak in equity indexes, or whether the dip-buyers will immediately dive in to push the major indexes to new record-breaking heights.

Powell's Remarks Spark Sell-Off Amid AI Rally

The recent sell-off occurred after Chairman Jerome Powell attempted to recalibrate expectations for the Federal Reserve's rate reduction schedule for the year at a press conference. While Powell did concede that the Fed is considering easement policies this year, he maintained that there won't be any rush.

January Barometer Predicts Positive Outcome for Stocks in 2024

Despite immediate fluctuations in stock prices, the bulls argue that 2024 will still be an upbeat year. ‘January Barometer’ theory states that if stocks show gains in January, it forecasts a successful year for the markets. Data dating back to 1938 supports this theory 74% of the time.

Nasdaq 100 Technical Analysis Indicates Promising Potential

Despite a two-day decline, the Nasdaq 100 Futures find and bounced back from the first main support area around 17220/30. Seizing the midway sell-off opportunity, many view it as a trigger for its next upward trajectory.

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