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While the clearance of event risk remains a debate, it certainly does clear the air for other key event to shape market in the latter half of the week.
Keeping the uptrend intact on the S&P 500 index, the market buoyed up prices at the start of the week as the jitters surrounding North Korean tensions receded. A substantial 1.0% and 0.6% gain had been clocked on the S&P 500 index and the Dow respectively. Despite high level of readiness on both US and North Korea's end, investors appear to have so far been placated by comments from US officials that military conflict is not imminent.
It is worth noting that propping up prices on Monday had been the IT and financial sectors on the S&P 500 index while the MSCI USA breakdown showed momentum stocks taking the lead, displaying that while the trending IT sector had been one of the first to face selling pressure during signs of panic, investors still remain largely trend-following as risk-off sentiment clears. However to regard that the dust have settled may be too early a conclusion given the threat that still looms as this morning’s notice from North Korea’s state media evidently showed.