S&P 500 retreats while EUR/GBP and silver price rally

​​​Macro update

​Wall Street slips as NVIDIA underwhelms

The Dow Jones traded flat, but the S&P 500 fell 0.54% and the Nasdaq 100 dropped 1.18% after NVIDIA results - while beating forecasts - failed to sustain artificial intelligence (AI)-driven momentum, sending its shares down 5.5%.

​Chip stocks retreat as AI trade cools

The Philadelphia Semiconductor Index declined 3.2%, threatening its 10-week winning streak, as investors unwound crowded AI positions and rotated into more cyclical sectors.

​Sector divergence broadens

Technology and communication services led the declines, while financials gained 1.3% on strength in major banks; the S&P software and services index rose 1.4%, supported by a 4.0% advance in Salesforce despite cautious guidance.

​Asia mixed as defensives firm

Asian markets were uneven, with Chinese and South Korean equities lower, while the Japanese yen strengthened 0.2% and US 10-year Treasury yields slipped to 4% as investors rotated into safer assets.

​Oil steady amid geopolitical uncertainty

Brent crude oil hovered near $71 and was on track for a roughly 1% weekly decline as US-Iran nuclear talks were extended and OPEC+ prepared to discuss a potential 137,000 barrel per day output increase, keeping crude in a holding pattern.

​S&P 500 loses upside momentum

​The S&P 500 has come off Wednesday's 6952 high following NVIDIA's over 5% share price drop.

​A fall through Thursday's 6860 low may re-engage this year's daily chart lows between 6824 and 6776. If fallen through, the technical picture would become bearish with the mid-December low at 6720 being in sight.

​Were a rise above Wednesday's high at 6952 to ensue instead, this year's highs at 6993 - 7002 would be back in play.

• ​Short-term outlook: bearish while below Wednesday's 6952 high.
• ​Medium-term outlook: neutral while above the 6721 mid-December low but below the 7002 January peak.

S&P daily candletsick chart

​EUR/GBP rallies

​In the course of this week EUR/GBP has come off its six week high at £0.8751 - having been rejected by resistance going back to late December - before finding support at Thursday's £0.8706 low before rallying to a two-month high, so far at £0.8765. Further up lies the £0.8800 region.

• ​Short-term outlook: bullish while above £0.8706, the 26 February low.
• ​Medium-term outlook: bullish while above the early February low at £0.8613, confirmation of which would be a daily chart close above £0.8751, targeting the £0.8850 region.

​EUR/GBP daily candlestick chart

​Silver flirts with resistance

​The silver price's over 20% rally from last week's $71.9774 low is gradually approaching its 4 February high at $92.2049, with so far a high at $91.2915 having been reached this week. If these levels were to be exceeded, the 20 January high at $95.8823 would possibly be next in line.

​Were the $91.2915 - $92.2049 resistance zone to cap, though, the late December peak at $84.0301 may be revisited. Below it meanders the 55-day simple moving average (SMA) at $82.3376.

• ​Short-term outlook: bullish while above the 24 February $84.9389 low.
• ​Medium-term outlook: neutral with a bullish bias while above the 17 February low at $71.9774 but below the 4 February high at $92.2049.

Silver daily candlestick chart