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Key points:
US tech sector weakness weighs on broader indices, but individual stocks show strength S&P 500 positioned for potential breakout if it moves beyond the current range Australian equities see positive momentum, supported by recent technical breakouts Energy stocks like Woodside (ASX:WDS) and Santos (ASX:STO) may benefit from rising oil prices and favourable technical setups
US trade deficit figures show an almost 33% increase to over $70 billion, as heightened imports balance against tariffs, with the goods trade gap hitting a record $1.24 trillion. Thomas Atkinson from FX Evolution notes that despite movements in US Treasury yields and robust activity in AI investment, big tech’s recent weakness is dragging on US market performance. He highlights that while The Magnificent Seven group of tech stocks falters, the broader S&P 500 illustrates more upward moves among individual stocks rather than across the index, pointing to increased opportunities outside major tech names.
Atkinson sees the S&P 500 trapped in a tight range between 6800 and 7000, suspecting that significant options activity at these levels could lead to an explosive breakout if breached. With uncertainty lingering in the US, Atkinson shifts focus to Australian equities, noting recent strong buying activity in the ASX following a pullback to 8400 and a technical breakout above 9000, which he views as a positive sign for Australian stocks if the weekly performance holds.
Rising oil prices, recently reaching six-month highs, further draw Atkinson’s attention to energy stocks. He points to Woodside (ASX:WDS) and Santos (ASX:STO), suggesting that strong technical patterns, if confirmed, could lead to significant upside for these companies
