Forex Analysis & Reviews: 22.05.2023 - US premarket on May 22:...

Live Chat

InstaForex Loprais Team - Official participant of the Dakar rally

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex Loprais Team - Official participant of the Dakar rally

22.05.2023 03:16 PM

US premarket on May 22: Investors expect progress in debt negotiations

On Monday, futures on US stock indices edged up following news that President Joe Biden and Republican House Speaker Kevin McCarthy would once again hold a meeting on raising the US debt ceiling. S&P 500 futures rose by 0.2%, while the high-tech Nasdaq remained around the zero mark after losses in semiconductor stocks. In China, Micron Technology Inc. products failed the cybersecurity check. As a result, Micron dropped by more than 5% in premarket trading, dragging down other chip manufacturers, including Nvidia Corp. and Qualcomm Inc.

Apparently, until the issue of the US debt limit is fully resolved, counting on stock market growth is unlikely. Instead, the opposite is more likely to occur as June 1 approaches - the deadline for the US Treasury. Volatility will only increase, and pressure in the stock market will rise. The key question for investors is whether US politicians can reach an agreement to raise the debt limit before the government runs out of funds.

On Friday, there was a significant market downturn after Republican negotiators announced a suspension of talks. The seriousness of the situation was highlighted by Treasury Secretary Janet Yellen on Sunday, who stated that the chances of the US being able to pay all its bills by mid-June are quite low.

Concerns about the debt ceiling and the US economy have prompted investors to strengthen bearish positions on the S&P 500, which has risen to its highest level since 2007.

Meanwhile, Treasury bond yields have decreased along with the yields on two-year notes, which are sensitive to interest rates. This occurred because the money markets have reduced their expectations of a 25% interest rate hike in June. Federal Reserve Chairman Jerome Powell and Minneapolis Fed President Neel Kashkari have recently indicated that they support a pause in the tightening cycle.

Speaking at a conference in Washington, the head of the Central Bank noted that the initiatives of the Federal Reserve used to address issues in medium-sized banks have helped prevent the worst-case scenarios. However, Powell added that the problems of Silicon Valley Bank and other similar banks will have an impact on the economy in the future. "The financial stability tools helped to calm conditions in the banking sector. Developments there, on the other hand, are contributing to tighter credit conditions and are likely to weigh on economic growth, hiring, and inflation," said the head of the Fed.

Iron ore futures have been declining for the third consecutive day due to signs of disappointing demand for steel from the construction sector, while the latest batch of data on industrial and retail sales in China turned out to be unexpectedly weak.

As for the S&P 500 index, demand remains intact, and bulls have a good chance of continuing the trend. Bulls need to stay above $4,185, from where they may drag the price to $4,208. In addition, bulls should control the level of $4,229, which would strengthen the new bull market. If the index declines amid weak US statistics, bulls should protect $4,185 and $4,150. Breaking through this level, the trading instrument may return to $4,116 and $4,090.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.