FX.co ★ S&P 500 May Regain Ground Following Three-Day Losing Streak

The major U.S. stock indices seem to be heading for a positive opening on Wednesday, indicating a potential bounce-back after a pullback seen on the final trading hours of the previous session. Investors may once again seek to acquire stocks, capitalizing on their slightly reduced values following Tuesday's drop-off in buying activity.

Most trading activity on Tuesday remained in the green until late in the session, leading the Dow Jones Industrial Average and the S&P 500 Index to close lower for three consecutive days. Nonetheless, trading activities might be moderated due to the absence of significant U.S. economic data, potentially causingsome investors to hold their positions.

Investors may also hesitate to execute substantial trades ahead of Thursday's releases concerning weekly jobless claims, Chicago's business activity, and pending home sales. Additionally, there will be a report on personal income and spending, which will include inflation readings that are supposedly preferred by the Federal Reserve. This report will be released while the markets are closed on Good Friday.

Meanwhile, Federal Reserve Chair Jerome Powell will take part in a moderated discussion at the Federal Reserve Bank of San Francisco Macroeconomics and Monetary Policy Conference on the same holiday.

In Tuesday's session, stocks showed modest strength for most of the day before they succumbed to pressure in the last trading hour. After gaining more than 100 points earlier in the session, the Dow closed down 31.31 points or 0.1 percent at 39,282.33. Similarly, the Nasdaq and S&P 500 indices declined, ending the session at 16,315.70 and 5,203.58, respectively.

This deterioration in the stock markets can be attributed to concerns over the potential economic impact following the suspension of vessel movements in and out of the Port of Baltimore, caused by a cargo ship crashing into a pillar of the Francis Scott Key Bridge, leading to its collapse.

Moreover, networking stocks significantly decreased during the day, pulling the NYSE Arca Networking Index down by 1.2 percent. Reductions in crude oil prices also burdened energy stocks, with the Philadelphia Oil Service and the NYSE Arca Oil Index dropping by 1.2 and 1.1 percent, respectively. However, computer hardware stocks maintained their strength.

Seagate Technology, a data storage company, noticeably jumped by 7.4 percent after Morgan Stanley upgraded its rating on the company's stock.

In economic news, the Commerce Department reported a significant increase in new orders for U.S. manufactured durable goods in February. Despite consumer confidence slightly falling in March according to the Conference Board.

Looking at commodities, crude oil futures are declining, trading at $81.12 a barrel from $81.62 the previous day. Gold, on the other hand, increased slightly, trading at $2,207.90 an ounce.

In currency trading, the U.S. Dollar exchanged for 151.25 yen compared to 151.56 yen at Tuesday's close.

In Asia, stocks closed with mixed results. Chinese and Hong Kong markets saw significant declines due to concerns about economic growth, while Japanese stocks gained due to a weaker yen. The dollar remained stable as investors anticipate more data on U.S. inflation and Federal Chairman Jerome Powell's speech later this week.The value of gold remained stable, but oil prices fell for a second consecutive day due to the revelation of a significant increase in US crude stockpiles.

Despite the attempts of Pan Gongsheng, Governor of the People's Bank of China, to ease concerns pertaining to the country's underperforming real estate market, Chinese markets experienced deep losses. Despite Gongsheng's assurances that the economy is now showing positive signs since the worst phase has passed, traders overlooked data indicating a 10.2% increase in profits for Chinese industrial firms in the first two months of the year compared to the same period last year. These losses were reflected by the Shanghai Composite Index, which dropped by 1.3% to 2,993.14 as investors anticipated financial reports from major institutions.

Hong Kong's Hang Seng Index similarly fell by 1.4% to 16,392.84. Alibaba Group Holding experienced a 2.1% decrease after unexpectedly calling off an initial public offering for its Cainiao logistics division.

Japanese markets, in contrast, made strong gains. The yen dropped to a 34-year low against the dollar following hawkish comments by Bank of Japan board member Naoki Tamura, who stated no specific conditions were set for raising interest rates again. The Nikkei 225 Index rose by 0.9% to 40,762.73, led by advancements in tech and exporter divisions. The broader Topix Index experienced a 0.7% increase to 2,799.28.

South Korean stocks remained almost unchanged, while the won dropped to its lowest value in nearly four months. This comes ahead of the release of key US inflation data. The Kospi ended slightly lower at 2,755.11.

Meanwhile, the Australian markets remained positive following lower-than-expected consumption inflation data for February, leading to predictions of imminent interest rates cuts. The S&P/ASX 200 Index rose by 0.5% to 7,819.60, buoyed by performances in the banking and healthcare sector.

European stocks performed mixed on Wednesday despite a rise in economic sentiment within the Eurozone to a three-month high and an unexpected improvement in French consumer confidence. This is due to the anticipatory build-up leading to the release of US consumer price inflation data set to be announced on Friday.

Meanwhile, Spain experienced faster growth in consumer rates mainly due to increased electricity and fuel prices. The nation's consumer price index grew by 3.2% on a year-on-year basis following February's 2.8% rise. Inflation data from France and Italy will be published on Friday, with data from Germany and the full Eurozone to be revealed next week.

On the stock front, H&M shares soared after the fashion retailer exceeded first-quarter operating profit expectations. DS Smith shares also surged following rumors of the paper and packaging company discussing a £5.72 billion ($7.22 billion) all-stock offer deal with International Paper.

In contrast, Swedish manufacturing conglomerate Assa Abloy AB reported a decrease as it announced plans to acquire Nomadix and Global Reach, both Wi-Fi access and engagement platform solution providers for the hospitality and commercial real estate industry based in the US and UK.

The Treasury Department is set to publicize the outcomes of the current month's auction that features seven-year notes valuing $43 billion at 1 pm ET.

Additionally, at 6 pm ET, the Federal Reserve Board Governor, Christopher Waller, is expected to discuss the economic forecast at a reception held by the Economic Club of New York.