FX.co ★ Stock market on November 3: S&P 500 and NASDAQ maintain their strength

Last Friday, stock indices ended with gains. The S&P 500 rose by 0.26%, while the Nasdaq 100 increased by 0.61%. The Dow Jones Industrial Average added 0.09%.

American indices began November with growth, indicating that the seven-month rally in global equity markets may have the potential to continue amid strong earnings from technology companies and easing trade tensions between the United States and China. Investors reacted positively to the latest financial reports from tech giants, which exceeded analysts' expectations. Sustained growth in revenues from leading companies in sectors such as artificial intelligence, cloud computing, and e-commerce instills confidence in the outlook of the US economy as a whole.

In parallel, the noticeable reduction in sharpness of trade relations between the US and China provides additional support to the stock markets. The return to constructive dialogue and possible concessions from both sides reduce the risks of a global recession and contribute to improved business activity. At the same time, caution must be exercised. Considering how much growth continues and at what levels we stand, it is crucial to evaluate risks and adjust investment strategies according to the changing economic environment.

The global MSCI index rose for the seventh time in eight sessions, while Asian indices increased by 0.5%. European futures also opened positively.

Commodity markets are now in focus: gold prices are gradually recovering after an initial decline last week, which was triggered by China's cancellation of a long-standing tax rebate. "The tax changes in gold's heaviest consumer nation will dent global sentiment," said BullionVault. "This news could prove very welcome to traders and investors hoping for a deeper correction after last month's spike."

Notably, in early October, the price of the precious metal reached a record high due to a buying frenzy among retail investors but then sharply fell in the last two weeks of the month.

West Texas Intermediate (WTI) crude oil rose by 0.6% after OPEC+ decided to halt production increases. Iron ore prices fell amid concerns over China's economic outlook. This decision was made in light of the prospect of a sharp increase in oversupply, resulting in Brent crude prices falling by 10% over the last three months.

Regarding the technical picture of the S&P 500, the main task for buyers today will be to overcome the nearest resistance level of $6,854. This will help the index fain ground and also pave the way for a breakout to the new level of $6,874. An equally important objective for bulls will be maintaining control above the $6,896 mark, which would strengthen buyers' positions. In the event of a downward move driven by reduced risk appetite, buyers must assert themselves around the $6,837 area. A break below this level would quickly push the trading instrument back to $6,819 and open the path toward $6,802.