LiveWire

Stocks are on the rise, supported by rapidly falling government bond yields as market participants scale back bets of Fed tightening. Stocks are also supported by largely oversold technical conditions and still elevated bets of a very hawkish Fed. Today we are watching the August US job opening data, the JOLTS, for clues on whether the jobs market strength is showing signs of easing, which could strengthen the case of a Fed pivot to less tightening.

Stock futures are under pressure at the start of this week and ahead of tomorrow's Fed meeting. Bitcoin, the barometer of risk, is losing nearly 5% and  is trading below 18'500.

Microsoft reported an upbeat sales forecast, seeing revenue and operating income increasing at a double-digit pace this fiscal year. That's shockingly strong given current recession fears and the fact that many were fearing a more cautious outlook. Google's ad revenue also showed resilience, highlighting mega-techs dominant position and strength during even windy environments. Meta is up next, set to release after market close. Stay tuned.

• 175 S&P500 companies, including 12 Dow components, are to report earnings this week. Snap's disappointing earnings has investors scrutinising reports of big techs, which have exposure to ad spending and consumer markets. 

The tech-heavy Nasdaq 100 broke out above its resistance level around 12'200 to trade at around 12'310, following better-than-expected Netflix earnings. As we began highlighting this encouraging pattern a few days ago, the Nasdaq is signaling that it could continue its run to test the resistance at around 12'900, last visited in early June. The wild card will be FANGs earnings next week, but so far it is looking promising. Tesla will announce earnings today after the close, which could also influence sentiment.