empty
22.08.2023 02:27 PM
US premarket on August 22: US stock market continues to rise ahead of key events

Futures on US stock indices opened with gains and extended the recovery seen on Monday. S&P 500 futures rose by 0.3%, while the tech-heavy NASDAQ jumped by 0.5%. European stock indices also rebounded from their lows, with the Chinese stock market showing particularly strong gains. In the UK, the FTSE 100 index ended the longest losing streak since July 2019.

This image is no longer relevant

Notably strong growth is observed in the tech sector, where Nvidia Corp. shares gained 1.6% in premarket trading following an over 8% surge on Monday, supporting the NASDAQ. Activision Blizzard Inc. rose by 1.1% as the potential acquisition by Microsoft Corp. for $69 billion might still go through after approval from British regulatory authorities.

Despite the stock market recovering after three weeks of decline, investors are focused on the speech of Federal Reserve Chair Jerome Powell, who will address the Economic Policy Symposium in Jackson Hole on Friday.

Recent data underscore the resilience of the US economy, potentially allowing for a smooth landing even in the face of high interest rates. This scenario maintains an appetite for tech company stocks, which have considerably declined in the past month. Investors now seek new insights into the trajectory of US monetary policy after Federal Reserve representatives raised rates to 5.5% last month – the highest level in 22 years. However, more than 80% of respondents in the latest Markets Live Pulse survey stated that Powell's speech in Jackson Hole would exert pressure on the market, given its hawkish nature.

In the bond market, the decline witnessed on Monday was partially compensated. The yield on 10-year inflation-protected Treasury bonds exceeded 2% for the first time since 2009. Oil continues to fall due to signs of supply recovery amid lingering demand issues.

Meanwhile, China is intensifying its battle against yuan sellers to halt a significant downward rally. The offshore yuan's rate recently stabilized after the People's Bank of China implemented the strongest currency fixing in history, suggesting that the Central Bank will continue to intervene in exchange rate formation.

This image is no longer relevant

As for the S&P 500, demand for the index has returned, maintaining buyers' prospects for correction. Bulls need to gain control above $4,427. They may drag the index to $4,447 from that level. Bulls also should settle the price above $4,469, which would cancel the bearish market. In case of a downward move due to decreased risk appetite, bulls will have to protect $4,405. Breaking through this level, the trading instrument may return to $4,382 and $4,357.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Market approaches its peak: final surge or new pullback?

Investors are increasingly sensing cracks in the foundation beneath them. This week's approval of a large-scale fiscal package by the Trump administration with promises of tax cuts and boosted military

Anna Zotova 13:05 2025-05-23 UTC+2

S&P 500 Forecast for May 23, 2025

In the daily timeframe, the price consolidates below the green line of the ascending price channel, with a target level 5908. This likely indicates preparation to break through resistance levels

Laurie Bailey 05:16 2025-05-23 UTC+2

Update on US stock market on May 22

S&P500 Snapshot of benchmark US stock indices on Wednesday: Dow -1.9%, NASDAQ -1.4%, S&P 500 -1.6%, S&P 500 at 5,844, range 5,400–6,200. Yesterday, the stock market hit a wall

Jozef Kovach 11:06 2025-05-22 UTC+2

Stock Market Buy and Sell Recommendations – May 22, 2025

Buy Google Shares (#GOOG) Google, a multinational corporation within Alphabet Holdings, specializes in internet search, cloud computing, and advertising technologies. After the price consolidated above the 165.21 level (the

Laurie Bailey 05:06 2025-05-22 UTC+2

US market pulls back. Correction in sight?

S&P 500 Overview for May 21US market pulls back. Correction in sight? Major US indices on Tuesday: Dow -0.3%, NASDAQ -0.4%, S&P 500 -0.4%.S&P 500: 5,940, trading range: 5,400-6,200

Jozef Kovach 12:41 2025-05-21 UTC+2

Update on US stock market on May 20. Market holding gains without any correction

S&P500 Update on US stock market on May 20. Market holding gains without any correction Snapshot of benchmark US stock indices on Monday: Dow +0.3%, NASDAQ +0.0%, S&P 500 +0.1%

Jozef Kovach 11:00 2025-05-20 UTC+2

US credit rating downgrade raises odds of market correction

S&P 500 Overview for May 19 US credit rating downgrade raises odds of market correction Major US indices on Friday: Dow +0.8%, NASDAQ +0.5%, S&P 500 +0.7% S&P 500: 5,958

Jozef Kovach 12:32 2025-05-19 UTC+2

US Market: stalling below yearly highs

S&P 500 Overview for May 15 US Market: stalling below yearly highs Performance of the key US indices on Wednesday: Dow -0.2% | NASDAQ +0.7% | S&P 500 +0.1% S&P

Jozef Kovach 12:59 2025-05-15 UTC+2

Stock market buy and sell recommendations for May 15, 2025

Buying JP Morgan Chase shares (#JPM) JP Morgan Chase is an American multinational financial conglomerate. On the weekly chart, the stock has accelerated to the upside, likely aiming to reach

Laurie Bailey 12:56 2025-05-15 UTC+2

Update on US stock market on May 14

S&P500 Snapshot of benchmark US stock indices on Tuesday: Dow -0.6%, NASDAQ +1.6%, S&P 500 +0.7%. S&P 500: 5,886, range 5,400–6,200. Yesterday was another winning session for stocks. The S&P

Jozef Kovach 13:05 2025-05-14 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.