10 days ago • Posted by Paul de La Baume

#Jobless claims rise, #Stocks hold onto momentum #Nasdaq #Tech #S&P500 $QQQ $SPY

US jobless claims continued to rise modestly as of July 23rd, still below pre-pandemic levels. Tomorrow's payroll report should be important. The Nasdaq has rallied 19% from its lows in mid-June, and S&P500 climbed 13%. Behind the rally, tech earnings have been stronger than feared. More importantly, the market consensus has evolved from a hard-landing with a recession to one where the Fed gradually pivots to being less aggressive as inflationary pressures soften. Data is supporting this view with oil prices declining and the Prices Paid Index revealing intense deflationary pressures. From a technical perspective, on the Nasdaq there is some resistance at 13’530, about 2% higher from here.