Last friday, Moody lowered its outlook on the US credit rating to "Negative" from "Stable", citing large fiscal deficits and a decline in debt affordability. Treasury ETF TLT is down 0.88% as 10 year yield rising to 4.674%.
Investors will focus on a slew of economic data this week as well as speeches from Fed officials for signs on trajectory of interest rates amid growing expectations that is done hiking borrowing costs. CPI on Tuesday is expected to show headline consumer prices eased to 3.3% in October from 3.7% in September. This may help the stock market.
Another event that might affect the stock market is U.S. President Joe Biden and Chinese President Xi Jinping will meet Wednesday in San Francisco, U.S. officials do not expect any major breakthroughs that could dramatically improve the relationship. Instead, White House officials say one of their main summit goals is simply to ensure that both sides continue talking, to reduce the chances that U.S.-China tensions spiral into conflict.
Dow component Boeing (#BA) shares are trading higher by around 5% after it anounced winning contracts from several Middle Eastern airlines during the Dubai Airshow.
Technically, major market indexes were up 9 days in the last 10, some profitaking is likely but downside could be limited. The Dow, S&P 500 and Nasdaq have all broke above their 4 month downtrend lines and have resumed their uptrends. The key levels to watch are Dow 34000, S&P 500 4335 and Nasdaq 13395. If these levels hold, the market trend will still be up.
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