Market sentiments continue to reel in from the US credit rating downgrade by Fitch overnight, with overbought technical conditions potentially exacerbating some profit-taking.

The Fed has hiked its policy interest rate by 25 bp and left the door open for another hike, but additional tightening moves are perceived to lack commitment at current point in time.

The start of the new trading week could potentially bring about some indecision, before volatility picked up on the onslaught of big tech earnings and the FOMC meeting towards the latter half.

Wall Street ended mixed overall, with further catch-up gains in value sectors as the DJIA delivered its nineth day winning streak.

After-market earnings releases from Netflix and Tesla have brought about a mixed showing in US equity futures this morning.

Better-than-expected earnings results from major US banks provided the go-ahead for the Wall Street rally to continue, with some catch-up gains in the value sectors.

Wall Street started the new trading week on a positive footing, as risk appetite rose ahead of several key earnings releases this week.

Earnings results from major US banks were somewhat mixed to end last week, with the Financial Select Sector SPDR Fund having formed a bearish engulfing candle on its daily chart.

Following a downside surprise in the recent US CPI data, the release of US June producer prices overnight further reinforces the narrative of abating inflation risks.

Lower-than-expected read in US inflation suggests that the tightening cycle from the Fed thus far are having its desired effect in moderating pricing pressures.