US stocks rebounded with mega-cap tech hitting a significant valuation milestone. Trump unveils new aggressive tariffs. The US dollar loses momentum while Asian markets show mixed performances.
US stock indices stall at resistance; Hong Kong, Singapore equities gain on weaker dollar
The US stock market shrugged off and became desensitized to the tariff headlines on Wednesday, 9 July, as the major US stock indices rebounded from their prior two days of tight range environments, led by a stellar rally of 2.8% in the Artificial Intelligence (AI) juggernaut, Nvidia, that also hit a significant historical milestone of being the first company with a US$4 trillion market valuation.
The Nasdaq 100 and S&P 500 advanced by 0.7% and 0.6% respectively, and the Dow Jones Industrial Average underperformed with a gain of 0.5%. All three US stock indices had their intraday rallies fizzled out yesterday at their respective key short-term resistance levels: the S&P 500 (6,290), the Nasdaq 100 (22,920), and the Dow Jones Industrial Average (44,560).
US President Trump unveiled a new round of tariff demand letters yesterday, including a 50% levy on Brazil, one of the highest rates announced on tariffs. The tariffs are set to hit after the 1 August deadline.
Interestingly, Brazil is the first country to receive Trump’s tariff notification letter, which was not on the initial list of trading partners when he announced higher so-called reciprocal tariffs in April. Hence, the letter to Brazil presents a warning shot to the BRICS group of developing countries that Trump deems as “anti-American”. In addition, India, being a member of BRICS, has also received a warning from the US White House administration of an additional 10% tariff.
More positive performances so far in the Asia Pacific stock markets. Japan’s Nikkei 225 underperformed with an intraday loss of -0.6% over fears of a roadblock in US-Japan trade negotiations, Hong Kong’s Hang Seng Index held steady above its 50-day moving average, acting as intermediate support at around 23,690 with an intraday rally of 0.5%, and Singapore’s Strait Times Index is on track to record its fourth consecutive all-time high today as it advanced by 0.4% to 4,074 at this time of writing.
The rebound seen in the US dollar since last Tuesday, 1 July, has appeared to be losing momentum as the US Dollar Index shaped a bearish reaction for two consecutive sessions (Tuesday and Wednesday) right at its 20-day moving average, which is acting as an intermediate resistance at around 97.70.
In today’s Asia session, the Aussie dollar continued to outperform against the US dollar, with an intraday gain of 0.24%, followed by the GBP (0.17%) and EUR (0.14%).
The current softer tone seen in the US dollar has also allowed Gold (XAU/USD) to recover from yesterday’s intraday slide of -0.6%. It added an intraday gain of 0.3% today to trade at US$3,325, above Wednesday's low of US$3,282.
Our YouTube video above contains the latest intraday technical analysis on the latest intraday technical analysis on US Wall Street 30, US Nas 100, US SPX 500, Hong Kong 33, Japan 225, Germany 30, EUR/USD, GBP/USD, AUD/USD, USD/JPY, Gold (XAU/USD), and West Texas Oil.
