A more cautious mood as markets gear towards Jackson Hole | investingLive

Wall Street retreated yesterday with tech shares bearing the brunt of the blow, though small caps were also lower. That’s putting a stop to the recent upside momentum as investors check back in waiting for more clues from the events later this week.

The Nasdaq closed down by 1.5%, resetting the gains from last week. The drop also sees it fall back just below its 100-hour moving average of 21,333, though it is still holding above its 200-hour moving average of 21,123. For some context, the index hasn’t fallen below both the key levels since April. Talk about one-sided momentum, eh?

As we look to the session ahead, the risk mood remains cautious still. S&P 500 futures are down 0.3% with Nasdaq futures down 0.4%. Dow futures are also seen down 0.2% after the index closed flat in overnight trading.

That is leading European stocks to also keep a more defensive mood after the positive showing yesterday. Both Eurostoxx and DAX futures are down 0.6% currently going into the session ahead.

In FX, the dollar held firmer yesterday and is keeping steadier today as well. The changes are light for the most part with only the New Zealand dollar being hammered after the more dovish RBNZ tilt here.

In terms of main events today, we’ll have the UK CPI and Fed minutes to watch out for. But in the context of this week, all eyes remain on Fed chair Powell’s speech in Jackson Hole.