- S&P 500 is moving higher today while traders are waiting for comments from Jackson Hole.
- Chinese stocks enjoyed strong support today as China is reportedly close to an audit deal with the U.S.
- S&P 500 needs to settle above the 20 EMA to continue its rebound.
S&P 500 Gains Some Ground As Jackson Hole Symposium Begins
S&P 500 is moving higher today as traders continue to buy stocks after the recent pullback. The index managed to settle above 4150 and made an attempt to move above 4185.
The better-than-expected GDP Growth Rate report, which indicated that GDP declined by 0.6% in the second quarter, provided some support to stocks today.
Treasury yields are moving lower, which is bullish for riskier assets. Treasury yields will be extremely sensitive to Powell’s comments on Friday, but it remains to be seen whether bond traders are ready for big moves ahead of his speech.
In case traders do not hear anything disturbing from Jackson Hole today, S&P 500 will gave a great chance to finish the day in the positive territory.
Currently, S&P 500 is trying to settle above the 20 EMA. A successful test of this level will provide S&P 500 with an opportunity to develop sustainable upside momentum. If S&P 500 closes below the 20 EMA today, traders should be prepared for some downside pressure at the start of tomorrow’s trading session.
Chinese Stocks Rally As U.S. And China Are Reportedly Close To An Audit Deal
Chinese stocks are among the best performers today after the release of a report on a successful audit deal between the U.S. and China. Chinese stocks were at risk of delisting if Chinese companies failed to comply with the U.S. audit standards.
While the rally in Chinese stocks is strong, the most notable gainer is the cloud-based data platform company Snowflake, which is up by about 20% after the strong quarterly report. The report highlighted strong revenue growth and provided material support to Snowflake shares, which have been under pressure this year as traders moved away from richly-valued tech stocks.
Peloton stock, which is down by more than 17% today, is the main disappointment of the day. Yesterday, Peloton rallied after the company announced that it would launch products, apparel and accessories in Amazon’s U.S. stores. Today, Peloton released its quarterly report, which indicated that demand for the company’s products remained weak.
For a look at all of today’s economic events, check out our economic calendar.