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Stocks Erase Opening Losses as Earnings Underpin Recovery

EQUITIES
  • Wall Street opened poorly Thursday, with the S&P 500 immediately coming under selling pressure as a recent rally across a narrow range of stocks include Rivian and Lucid Group ran out of steam. Both shares traded under heavy pressure alongside Cisco Systems, which slipped close to 10% on earnings. The stock provided a solid headwind for the Dow Jones Industrial Average, knocking over 30 points off the index.
  • Having printed a low at 4668.00 - on heavy volume - the e-mini S&P staged a solid recovery off the lows. This further cements the underlying bullish theme, backed up by the prominence of buy-the-dip strategies. A recovery back above 4700 opens 4717 initially (1.50 proj of Jul 19 - Aug 16 - Aug 19 price swing), should earlier highs at 4711.75 give way.
  • Perhaps importantly, the in-focus Semiconductors sector traded very well, with NVIDIA and AMD surging thanks to NVIDIA's particularly strong Q3.

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