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Equities Roundup: Weaker/Narrow Range After Breaking 50D EMA Support

US STOCKS

Pensive trade as markets continue to wait for some break in the debt ceiling impasse. Stocks holding weaker/narrow range, SPX eminis near session lows after breaking technical support earlier (50D EMA of 4124.34) that exposes a stronger short-term reversal and open 4062.25, the May 4 low.

  • Reflecting a more pessimistic tone on the Hill negotiations, House Minority Leader Hakeem Jeffries (D-NY) told reporters Thursday afternoon that “it’s increasingly clear to me that House Republicans are intent on crashing the economy and defaulting on our debt. That’s wrong. It will hurt everyday Americans in the brinksmanship.”
  • Currently, S&P E-Mini futures are down 28 points (-0.67%) at 4130.5; DJIA down 196.58 points (-0.59%) at 32855.24; Nasdaq down 77.6 points (-0.6%) at 12482.15.
  • Leading laggers: Real Estate and Financials sectors underperformed, Banks and financial institutions weighing on the latter amid the prospect of a debt default.
  • Leading gainers: Energy and Consumer Discretionary narrowly outperformed, oil and gas shares stronger but off highs as crude oil prices traded firmer (but off highs) after a large draw in US crude inventories was reported earlier.

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