Federal Reserve Chair Jerome Powell's recent remarks shed light on the central bank's stance regarding interest rates and inflation, providing insight into the future trajectory of monetary policy. Powell signaled a cautious approach, indicating that policymakers will refrain from cutting interest rates until clearer signs of lower inflation emerge, despite a recent uptick in prices.

In his speech, Powell acknowledged that recent inflation figures were higher than expected but emphasized that they did not materially alter the broader trajectory of inflation. He reiterated the Fed's expectation to begin lowering rates "at some point this year," but emphasized the need for greater confidence that inflation is moving sustainably down toward the target of 2%.

The cautious approach outlined by Powell suggests that the Fed will closely monitor incoming economic data, particularly inflation indicators, to assess the need for any adjustments to monetary policy. Investors and market participants should expect heightened volatility in response to future economic releases, as they will likely influence expectations regarding the timing and magnitude of any potential rate cuts.

Apple Inc. (AAPL): Slightly bullish

Apple Inc. is venturing into the realm of personal robotics, as reports indicate the company's exploration of innovative devices designed to enhance the home experience. With teams dedicated to this endeavor, Apple is positioning itself to potentially revolutionize the way consumers interact with technology within their living spaces. Engineers are said to be working on a mobile robot capable of following users around their homes, alongside an advanced tabletop device incorporating robotics to facilitate dynamic display movement. This strategic move underscores Apple's commitment to diversification and innovation, with the potential to introduce a new category of products that could significantly impact the market.

Using the momentum, AAPL (Apple Inc.) will rebound from its strong Support level in 169.00 with aiming 175.00 as closest Resistance level.

Tesla Inc. (TSLA): Bearish

Tesla Inc. faces significant challenges following a dismal sales report and subsequent aggressive selling pressure on its stock. The electric vehicle giant's shares have plummeted more than 33% this year, ranking as one of the worst performers in major indices. Tesla's stock approaches a critical level at $150, prompting technical analysts to closely monitor for potential support. Investors are anxiously awaiting developments to ascertain the stock's direction amidst mounting concerns and market volatility.

During the uncertainty moment, the most possible traded range area for TSLA (Tesla Inc.) is within Support level 162.00 and Rejection area 180.00.

Nike Inc. (NKE): Slightly bearish 

JD Sports Fashion Plc reports a decline in sales attributed in part to stagnation in innovation from Nike Inc., a key supplier for the UK retail chain. The lack of fresh offerings from Nike has reportedly led to consumer dissatisfaction, with shoppers seeking novelty and innovation in their wardrobe choices. Régis Schultz, JD Sports' CEO, notes the success of competitors like Adidas and New Balance, suggesting that their ability to introduce new products has bolstered consumer demand. This commentary underscores the importance of innovation in the retail sector and highlights the potential impact on companies' financial performance when key suppliers fail to meet consumer expectations.

It is only one moment away for NKE (Nike Inc.) to breakout its strong Support level. The shares will be traded within range 86.00 and 94.00.

Fullerton Markets Research Team

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