US major indices rally on turnaround Tuesday

Technical Analysis

Tomorrow will be key

The major indices enjoyed a turnaround Tuesday.

The final numbers are showing:

  • The S&P index rose 22.54 points or 0.80% to 2834.41
  • The Nasdaq index rose 87.47 points or 1.14% to 7734.49
  • The Dow rose 207 points or 0.82% to 25532.05

The gains were a welcome relief after yesterday’s run lower, but the close was not the best.  The major indices ended near the middle of the low to high trading ranges.  The good news is that the indices did not go negative.  

European shares meanwhile had some strong closes today. 

Tomorrow will be key for investor sentiment.  There was a little more positive chatter today from the Pres., Mnuchin, but 25% tariffs may bring revenues into the treasury, but it comes out of consumers pockets.   Earnings projections and multiples could get hurt.  With the market 8 days off the all-time highs when chatter was of an imminent deal (and no 25% tariffs), the story is simply not the same.   The economy may or may not slow to a recession, but earnings growth for some companies, has a headwind to deal with.  

PS European tariffs may also be an issue soon too…..

ForexLive

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