All markets react with growth to news about the progress of negotiations between Russia and Ukraine. US stock indices continue to grow, and a numb8er of risky assets have updated their highs. A particular strengthening was also noted in the Russian ruble, which at the time of writing is trading for 83 rubles per dollar.
Russian negotiators said today that the meeting was successful, and the negotiations were quite constructive. "We have received proposals from Ukraine to consider their formulated position on inclusion in the treaty," Vladimir Medinsky said today. They even talked about the possible signing of a peace treaty, at which a meeting between Vladimir Putin and Zelensky is possible. Medinsky also noted that at the moment, subject to rapid work on the agreement and finding a compromise, the opportunity to conclude peace will become closer.
Against this background, futures on the Dow Jones Industrial Average rose by 139 points or 0.4%, futures on the S&P 500 jumped by 0.4%, and on the Nasdaq 100 - by 0.3%.
In addition to the positive reaction to the outcome of the negotiations, market growth will be limited by rather poor indicators of consumer confidence in the United States and high housing prices. It is expected that the consumer confidence index will be worse than economists' forecasts, which may further weaken the dollar's position against risky assets, and also lead to a correction in the stock market. It is not clear how traders will perceive the positive results of the negotiations, but investors' optimism will increase against this background.
Following the results of yesterday, the Dow and S&P 500 indices rose by 94.65 points and 0.7%, respectively, recording a three-day series of growth. Nasdaq was the leader, rising 1.3%.
Many investors are impressed by the stability of the market. However, in the absence of an alternative, since investing in bonds during the Fed's interest rate hike is not a good idea, traders choose the stock market and invest in it with the expectation of receiving a dividend income. This may be what keeps the market at current levels, allowing it to move up further.
Meanwhile, 5-year Treasury bonds rose above 30-year ones on Monday, marking the first inversion since 2006. As I noted yesterday, the shift has raised some concerns about a recession in the economy, although economists usually observe the spread between 2-year and 10-year bonds, which remains positive.
Premarket:
FedEx. FedEx CEO Fred Smith has announced that he will step down from this position. This will happen on June 1, and his place as CEO will be taken by President and Chief Operating Officer Raj Subramanian. FedEx shares rose 2% in premarket trading.
Uber Technologies is close to an agreement with a San Francisco taxi company to include taxis in its taxi ordering platform in this city. The company recently entered into a similar agreement in New York. Against this background, the shares gained 1.9% in the premarket.
Pinterest securities fell 2.7% in the premarket after Morgan Stanley downgraded its rating to "hold" from "buy". Morgan Stanley points out the manipulations that are difficult for the user, which increase the time of using the application with less potential for monetization.
As for the technical picture of the S&P 500
Today's breakout attempt of $ 4,588 turned out to be successful. However, it is this area that bears will also focus on today, as closing the market below this range will cool the ardor of buyers. Bulls, of course, will certainly try to continue the upward trend. The nearest target is the resistance of $ 4,665. Going beyond this level will open a direct path for the trading instrument to the highs: $ 4,722 and $ 4,818. In the event of a return of pressure on the index and a breakthrough of $ 4,588, we can expect a decline to the area of $ 4,539, but the longer-term target of sellers of the trading instrument will be at least $ 4,488, after which the bulls will have to start all over again.