[Platinum Insights] (5.11.23)

Good morning.  

U.S. stock index futures are mixed with lingering optimism over upbeat inflation data, while Disney took a hit as it lost subscribers in the prior quarter.  

The Nasdaq index ended Wednesday at its highest level in more than eight months, boosted by large-cap technology stocks as Treasury yields fell after data showed April consumer prices slowed slightly from a year ago, raising hopes that the Federal Reserve’s interest rate-hiking cycle is close to an end.  

On tap for the day, the Labor Department’s Producer Price Index (PPI) for final demand along with initial unemployment claims.   

PacWest shares tumble 20% after regional bank says deposits fell 9.5% last week.

U.S. Treasury Secretary Janet Yellen urged Congress to raise the federal debt limit and warned that default could have severe repercussions on the global economy and risked undermining U.S. global economic leadership.   

“There is no good alternative that will save us from catastrophe. I don’t want to get into ranking which bad alternative is better than others, but the only reasonable thing is to raise the debt ceiling and to avoid the dreadful consequences that will come,” Yellen told reporters.  

WTI crude futures traded below $73 per barrel. Gold prices steadied near $2,030 an ounce while the yield on the US 10-year Treasury note fell to 3.39%.  

The DOW and S&P continue to exhibit range-bound trading patterns as the Nasdaq is testing the upper end of its range yesterday. By exercising caution and adapting your approach, you can navigate range-bound trading patterns more effectively as a swing trader. Being patient, disciplined, and aware of the risks associated with this market condition will help you manage your trades and protect your capital.