Wall Street’s three main indexes advanced last week after better than expected data released from the U.S., which confirmed that the economy continues to recover from the pandemic. The country has reported a drop in jobless claims and a 1% rise in core durable goods serving to highlight the improvements seen in April and May.
The prospect of a $6 trillion budget from Joe Biden that includes a huge provision for infrastructure projects is also positive news for the stock market. On the other side, the country reported that the core PCE inflation jumped to 3.1% YoY in April, which is much higher than anticipated.
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At the beginning of May, the U.S. policymakers said they would focus on ensuring that the labor market makes a full recovery, but the U.S. Federal Reserve will probably have to tighten its ultra-loose monetary policy sooner than anticipated. Rising inflation in the U.S. could hit investor confidence again, and the upcoming days may bring more nervousness for stock market investors.
Investors could start to sell tech-related companies amid concerns about the rising interest rate, and probably it is not the best moment for investing in Apple, Inc. (NASDAQ: AAPL), Facebook, Inc. (NASDAQ: FB), and Twitter, Inc. (NYSE: TWTR).
Apple shares have extended correction from their record highs
Apple shares have extended correction from their record highs above $140 registered in January 2021, and the current share price stands around $124.
Technically looking, Apple shares could fall even more in the upcoming days; still, if the price jumps again above $130, we have the open way to $140 resistance.
Facebook shares have found strong support above $300
The current support levels are $320 and $300; $340 and $350 represent the resistance levels. If the price jumps above $340 resistance, the next target could be around $350, but if the price falls below $300, it would be a firm “sell†signal and maybe a sign of the trend reversal.
Twitter shares have stabilized above $50 support
Twitter shares have extended correction from their record highs above $80 registered in February 2021, and the current share price stands around $58.
If the price falls again below the $50 support level, it would be a firm “sell†signal, and we have the open way to $40 support. On the other side, if the price jumps above $65, it would be a signal to trade Twitter shares, and the next target could be around $70.
Summary
Rising inflation in the U.S. could hit investor confidence again, and probably it is not the best moment for investing in Apple, Facebook, and Twitter. The prospect of a $6 trillion budget from Joe Biden still keeps the stock market in a positive mood, but the upcoming days may bring more nervousness for stock market investors.
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