Market Insights > Daily Market Analysis New

Wall Street Extends Gains as PCE Softens, Weekend Diplomacy in Focus

Published: 10 April 2026,06:33

Daily Market Analysis New

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Key Takeaways:

*Wall Street continued higher, supported by a cooler PCE reading that strengthened expectations for Federal Reserve rate cuts and sustained risk appetite.

*Despite the advance, geopolitical uncertainty persists with tensions involving Tehran and Jerusalem keeping sentiment cautious and limiting upside momentum.

*Markets are now focused on upcoming U.S.-Iran negotiations—progress could extend the rally, while setbacks may trigger profit-taking and renewed volatility.

Market Summary:

Wall Street extended gains in Thursday’s session but at a more measured pace after the previous day’s sharp relief rally. The Dow Jones Industrial Average rose 478 points (1.00%) to close at 48,387.92. The S&P 500 added 0.9% and the Nasdaq Composite advanced 1.1%. The session opened strong on the back of a softer-than-expected February PCE reading — headline PCE came in at 2.7% year-over-year versus the 2.8% consensus — reinforcing expectations of Federal Reserve rate cuts later in 2026. Energy stocks lagged after oil prices stabilised following the initial 13% plunge, while financials and technology names led the advance.

Geopolitical developments remained the dominant theme. The fragile U.S.-Iran ceasefire, now in its third day, continued to show cracks. Conflicting statements from Tehran and Jerusalem over the scope of the truce — particularly regarding Israeli operations in Lebanon — kept risk sentiment in check. Oil prices traded in a narrow range, reflecting cautious optimism that the agreement will hold.

Attention now turns to the last trading session of the week Markets will enter the day with heightened focus on the upcoming U.S.-Iran diplomatic talks, now expected to take place over the weekend in a neutral venue under Pakistani mediation. Any positive signals from the delegations — such as confirmation of a monitoring mechanism or extension of the truce — could spark a further relief rally and push the major averages toward fresh highs. Conversely, signs of deadlock or renewed escalation rhetoric risk triggering a late-week pullback as investors square positions ahead of the weekend.

Overall, the two-day advance has restored bullish momentum, yet the near-term direction remains tethered to weekend diplomacy. Traders are likely to adopt a wait-and-see stance on Friday, with reduced volume expected and volatility potentially rising into the close. Sustained gains will depend on de-escalation headlines emerging from the talks.

Technical Analysis

S&P 500, H4:

The S&P 500 has achieved a decisive technical breakthrough, surging past the long-term downtrend resistance line and subsequently breaking above the critical 61.8 percent Fibonacci retracement level near the 6,730 mark. This dual breakout represents a total structural break for the index, invalidating the bearish trajectory that had been in place since the January peak and confirming a clear bullish bias. The 61.8 percent Fibonacci level is widely regarded as the threshold that separates a corrective bounce from a full trend reversal. The S&P 500’s ability to close decisively above this level provides strong technical confirmation that a new uptrend phase is underway.

However, the sharp rebound has created a Fair Value Gap (FVG) on the charts, and the bullish momentum in the last session showed signs of fatigue, suggesting that a technical pullback is likely in the near term. Such a retracement would be a healthy development, allowing the index to digest recent gains and reset momentum indicators.

The critical level to monitor on any pullback is the 6,730 mark, which has now transitioned from resistance to support. Should the index sustain above this level on a retest, it would confirm that the breakout is valid and that the bullish trajectory remains intact. A hold above 6,730 would position the S&P 500 for a challenge of the next resistance targets near the 6,900-6,950 region.

Resistance Levels: 6874.15, 6984.40

Support Levels:6740.00, 6620.00

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