## Major Index Performance
- **S&P 500**: The index shed half of one percent on Friday, closing above the 20-day moving average at around 5979. This move kept the index within a crucial resistance zone around 5975[1][5].
- Daily movement: -0.5% (approx. -30 points)
- **Dow Jones**: While specific daily percentages are not provided, the Dow Jones failed to make a fresh record high in late January, unlike the S&P 500, indicating some bearish divergence among the indices[5].
- **NASDAQ**: Similar to the Dow Jones, the NASDAQ 100 did not achieve a fresh record high, suggesting bearish divergence. The NASDAQ has been influenced by the performance of mega-cap tech stocks, with four major tech companies (AAPL, META, MSFT, TSLA) set to report quarterly results next week[2][5].
## Key Factors Driving Today's Market Direction
- **Tariff Concerns**: Investors are concerned about the implementation of tariffs on Canada, Mexico, and China, which are set to take effect. This news led to a reversal of early gains on Friday[1][5].
- **Tech Earnings**: The upcoming quarterly results from major tech companies are expected to significantly influence the near-term direction of the S&P 500[2].
- **Market Valuations**: Momentum indicators have negatively diverged from price since mid-last year, indicating waning enthusiasm for tech-heavy benchmarks amidst extreme valuations[1].
## Notable Sector Performance
- **Top Gainers**: No specific sectors were highlighted as top gainers for the day, but sectors like energy and materials could see movement based on economic data and geopolitical events.
- **Top Decliners**: The market saw a general decline, particularly in response to tariff concerns and tech sector uncertainties.
## Market Highlights
- **Most Actively Traded Stocks**: Stocks like Amazon.com Inc. (AMZN), Netflix Inc. (NFLX), and 3M Company (MMM) were among the notable movers, though specific trading volumes for the day are not detailed[2].
- **Biggest Percentage Gainers and Losers**: No specific stocks were highlighted for the day, but the overall market sentiment was cautious.
- **Significant Market-Moving News Events**: The impending tariffs on Canada, Mexico, and China were a major concern[1][5].
- **Important Economic Data Releases**: Canada GDP data and its implications on the path towards recession were discussed, but no immediate impact was detailed for the US market[1].
## Technical Analysis
- **Current Market Trend**: The market is showing signs of bearish divergence among key indices. The S&P 500's fresh record high without corresponding highs in the NASDAQ 100 and Dow Jones is a negative indicator[5].
- **Key Support and Resistance Levels**:
- S&P 500: Critical support in the 5800-5773 range, with a 200-day MA at 5629. Resistance is around 6130[5].
- Russell 2000: Near-term resistance at the 50-day SMA; failure to close above this level indicates a bearish trajectory[2].
- **Trading Volume Analysis**: Market breadth expanded, with 62.20% of S&P 500 stocks trading above their 200-day SMA, indicating broader participation but also near-term overbought conditions[2].
- **VIX Movement and Implications**: No specific VIX movement was detailed, but the rise in volatility expected through February could impact market stability[1].
## Forward-Looking Elements
- **Pre-market Futures Indication**: No specific pre-market futures data was provided for February 4.
- **Key Events to Watch for Tomorrow**: The post-earnings reaction from major tech companies (AAPL, META, MSFT, TSLA) will be crucial for the S&P 500's direction[2].
- **Important Upcoming Earnings Releases**: Quarterly results from AAPL, META, MSFT, and TSLA are scheduled for next week[2].
- **Potential Market Catalysts**: The implementation of tariffs and the reaction to key earnings reports are significant catalysts to watch[1][5].
This content was created in partnership and with the help of Artificial Intelligence AI
