The stock market is experiencing a precarious rise amid various risks such as falling durable goods orders and uneven corporate earnings. Major technology firms are preparing for earnings reports that may impact market stability. The latest durable goods orders from the U.S. Census Bureau indicate a decline, reflecting ongoing weakness in manufacturing demand. Despite some relief from lower-than-expected drops in orders, economic slowdown pressure is evident. Global trade tensions and political friction further complicate the market outlook, suggesting potential volatility ahead as current investor complacency may soon diminish.
The stock market continues its precarious ascent, navigating a "wall of worry" - a term that describes a rising market despite mounting economic and geopolitical concerns.
The U.S. Census Bureau's latest durable goods orders report showed a 9.3% month-on-month decline in headline orders for June, signaling persistent weakness in manufacturing demand.
While the smaller-than-expected drop in durable goods orders offers some relief, the data still points to ongoing economic slowdown pressures, which could increase market volatility.
Investors are currently ignoring these risks and weak market internals, but this resilience may not last as a spike in the VIX could signal that recent gains are starting to unravel.
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