Capital.com Research Team

It will be a busy week in the US with the return of economic data and NVIDIA’s earnings results.

Liquidity in the market has been tightening in recent months as the Federal Reserve’s reserve balances have fallen sharply.

The S&P 500 rose by roughly 20 basis points on 11 November; however, the move was much more subdued than that on 10 November.

Since reporting results, the AI names have been battered amid fears of out-of-control capital expenditure and the damage this is likely to inflict on free cash flow.

Stocks recovered on 5 November, with the S&P 500 rising by about 40 basis points. The increase partly offset some of the losses from 4 November, although not all declines were regained.

The ADP jobs report on Wednesday, 5 November, at 8:15 a.m. Eastern Time is expected to show that hiring in October improved, rising by 25,000 jobs — a significant improvement from the September reading, which showed a decline of 32,000 jobs.

The S&P 500 finished the day unchanged, even though the Fed cut rates by 25 basis points.

The next couple of days will be a defining moment for US equity markets and markets globally, with the Fed, the BOJ, and the ECB all making monetary policy announcements and decisions.

The S&P 500 rallied about 1% on the day. This came as implied volatility, as measured by the VIX 1-Day, fell sharply from an elevated level on Friday, 24 October.

Big Tech Earnings Set to Steer US Markets into Year-End.