Triple witching day set to bring market volatility 20/09/2024

US Pre-Market

Futures: The S&P 500 is down 0.18 %, the Dow Jones Industrial Average is down 0.06%, and the Nasdaq 100 is down 0.26%.
Dow futures hovered near the flatline Thursday night after the 30-stock index hit a new record high, fueled by optimism surrounding the Federal Reserve's interest rate cut. The Dow is showing minimal movement after closing above 42,000 for the first time. It’s also been a strong week for small-cap stocks, with the Russell 2000 surging 2.1% on Thursday, marking its seventh consecutive positive session.
Watchlist for today: FDX, LEN, CHWY, NKE, NVDA, MSFT, X

Bitcoin

Bitcoin (BTC) surged 6% to a three-week high near $63,500 after the U.S. Federal Reserve cut interest rates by 0.50% on Sept. 18. Despite this rally, derivatives data suggest that Bitcoin bulls are cautious about increasing leveraged positions, which is putting the $62,000 support level under strain. The interest rate cut, along with job market data, has influenced Bitcoin's price. To gauge traders' confidence in the $62,000 support, it's important to monitor the Bitcoin futures funding rate, as Bitcoin options are showing a decreased demand for downside protection.
Watchlist: Bitcoin: 60 800-64 200  Ethereum: 2250-2575, Solana: 128.3 -150.40


Forex Market

The Bank of Japan (BOJ) maintained its interest rates unchanged while maintaining a positive outlook on the economy, causing the yen to strengthen. On Friday, September 20, Japan's inflation data will influence demand for the USD/JPY pair. Economists predict the annual inflation rate will increase from 2.8% in July to 3.0% in August. If inflation exceeds expectations, it could spark speculation of a potential BOJ rate hike in Q4 2024. Meanwhile, the euro climbed 0.4% to $1.1162, and the British pound gained 0.5%, reaching $1.3281.
Whatchlits: EUR/USD: 1.1065-1.1188, USD/JPY: 139.88 -144.06
 

Basic Materials

Crude oil prices are poised to finish the week with a rare gain after several months of declines, buoyed by the Federal Reserve's 0.5% interest rate cut. Although both Brent crude and West Texas Intermediate (WTI) dipped slightly during midmorning Asian trading, they are on track to close the week higher. WTI has climbed from around $69 to nearly $72 per barrel, while Brent crude is expected to gain approximately $2 per barrel over the week. Oil prices also found support from a drop in U.S. crude oil inventories, which hit a 12-month low last week.
Watchlist: GOLD 2550-2600 US Oil: 68 -71.60

The TEFS Analyst team wishes you a successful day!