US OPEN: Is This the Turning Point After the Correction?

US equity markets opened marginally higher today, but sentiment is clearly improving when viewed through the lens of futures contracts. The US500 saw a 3% pullback from its October 30 peak to its low point during the Asian session. However, we are now observing a strong rebound, with S&P 500 futures climbing back above 3,800 points.

Technical View on US500

The US500 continued its sharp retreat during the Asian session today, following a volatile day marked by mixed corporate earnings—poor results from SMCI and a slight disappointment from Arista triggered significant drops, which were countered by solid results from AMD. Today’s rebound continues following better-than-expected US economic data. The bounce off the 50.0% Fibonacci retracement of the last major uptrend suggests that the underlying bullish impulse remains intact. A close today above 6,800 points should confirm the end of the current corrective phase. Source: xStation5.

Macro Data Signals Economic Resilience

Macroeconomic data continues to paint a solid picture of the US economy, even amidst the ongoing government shutdown:

• Private Sector Employment (ADP): U.S. private sector employment increased by 42,000 jobs in October, surprising the market after a previous decline. This signals some stabilization in the labor market, despite the general observed softening of labor demand.

• ISM Services PMI: The index delivered a positive surprise, reading 52.4 against expectations of 50.8. While the Prices Paid sub-index soared to a very high 70 points, the main drivers of the rebound were robust growth in Business Activity and New Orders.

Stock Movers: Winners and Losers

• Advanced Micro Devices (AMD): Investors are closely watching quarterly results and guidance updates amidst ongoing valuation pressure in the semiconductor sector. Despite solid earnings, the stock gains are marginal, up 0.6% less than an hour after the open.

• Super Micro Computer (SMCI): Following disappointing earnings and outlook, the company is in the spotlight, with investors debating potential recovery vs. further losses. The stock is down nearly 7% at the open, reflecting the market’s reaction to the delivery timing deferrals.

• Alphabet (Google) and Wiz: The Mag7 giant received clearance from the Department of Justice to acquire cybersecurity firm Wiz. Alphabet shares are up 2.5%.

• McDonald's: A positive surprise in U.S. sales growth makes the company a stock to watch for further performance and outlook. Shares are up over 3%.

• Axon Enterprise and Pinterest: Negative earnings and guidance have led to significant share price declines.

  • Axon is down around 20% due to profit disappointment linked to increased costs from tariffs.

  • Pinterest is also down 20% after disappointing on profit, despite reporting growing revenue and user numbers.