empty
14.08.2023 02:08 PM
US premarket on August 14: US shareholders may get rid of their assets

Futures for US stock indices kicked off the trading session with gains. S&P 500 futures rose by 0.2%, while the tech-heavy NASDAQ gained 0.3%. The possibility of political actions from Chinese regulators to address growing financial and real estate risks injected some confidence among traders. However, it has not fundamentally shifted the market's dynamics. Stoxx 600 also increased due to news from China alleviating concerns about real estate-related issues spreading to other markets. Treasury bond yields stabilized at their highest level since November.

This image is no longer relevant

At present, Country Garden Holdings Co. is attempting to extend the maturity date of bonds that are on the brink of default. The Chinese developer risks joining the ranks of defaulters if it fails to make payments on its two-dollar bonds within a 30-day grace period. Amid these events, China's banking regulator recently announced the formation of a working group to study risks in Zhongzhi Enterprise Group Co., which missed payments on investment products sold to affluent clients and corporations.

However, the risk of contagion beyond China is relatively low. However, is this yet another reason to act with extreme caution? The CSI 300 index, a benchmark for Chinese stocks, is now poised to erase all gains made after the Politburo meeting last month, which unveiled additional economic stimulus measures.

This week, special attention will be given to the minutes of the US Federal Reserve meeting regarding policy matters. Traders still hope to glean hints about the central bank's next move. Investors who bet on policy easing this year are forced to adjust their expectations as official statements indicate a longer period of elevated interest rates than anticipated. This maintains pressure on stock indices and strengthens demand for the US dollar.

Investors who reaped record profits in the first half of the year should now actively contemplate how central banks will navigate conflicting signals from inflation and the economy. This only fuels the confidence that there is no rush to cut interest rates.

Barclays Plc recently stated that many investors hold sizable long positions in stocks, while the closing of short positions has run its course. This means holders could become sellers at any moment if volatility sharply spikes, providing a significant trigger.

Regarding the S&P 500, demand for the index has not returned, and trading remains within a sideways range. Bulls have a chance to continue the uptrend, but they need to settle above $4,488 and $4,515. From this level, the trading instrument may soar to $4,539. Bulls also should control $4,557, solidifying the bullish market. If the index declines due to reduced risk appetite, bulls should protect $4,469. A breakthrough would swiftly push the trading instrument back to $4,447 and $4,427.

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

Stock market on July 10: SP500 and NASDAQ extend upward momentum

US stock markets ended the previous trading session with gains, continuing their upward trajectory. The S&P 500 rose by 0.61%, the Nasdaq 100 advanced 0.94%, and the Dow Jones Industrial

Jakub Novak 12:42 2025-07-10 UTC+2

Update on US stock market on July 10: bullish trend going on

S&P500 Snapshot of major US stock indices on Wednesday: Dow +0.5%, NASDAQ +0.9%, S&P 500 +0.6%, S&P 500 6,263 in the range of 5,900 to 6,400. The stock market began

Jozef Kovach 11:41 2025-07-10 UTC+2

Update on US stock market on July 9: consolidation stage. Bank stocks decline

S&P500 Snapshot of major US stock indices on Tuesday: Dow -0.4%, NASDAQ -0.1%, S&P 500 -0.1%, S&P 500 at 6,225, within the range of 5,900 to 6,400 A lack

Jozef Kovach 12:55 2025-07-09 UTC+2

Stock market on July 9: S&P 500 and NASDAQ struggle to gain ground

US stock indices closed mixed on Monday, reflecting growing uncertainty in investor sentiment. The S&P 500 dipped slightly by 0.07%, the Nasdaq 100 made a modest gain of 0.03%, while

Jakub Novak 11:22 2025-07-09 UTC+2

Stock market on July 8: S&P 500 and NASDAQ continue their decline

US stock indices closed lower yesterday, extending recent losses. The S&P 500 dropped by 0.79%, while the Nasdaq 100 fell 0.92%. The industrial Dow Jones index retreated by 0.94%. Asian

Jakub Novak 10:48 2025-07-08 UTC+2

US market retreats on Trump tariffs. Correction ahead?

S&P 500 Overview for July 8 US market pulls back on Trump tariffs Major US indices on Monday: Dow -0.9%, NASDAQ -0.9%, S&P 500 -0.8%, S&P 500: 6,230, trading range

Jozef Kovach 09:52 2025-07-08 UTC+2

Stock market on July 7: S&P500 and NASDAQ drop

Last Friday was a public holiday in the US, so trading was not conducted. However, today, at the opening of the Asian session, index futures declined while the US dollar

Jakub Novak 13:41 2025-07-07 UTC+2

Stock market on July 4: S&P 500 and NASDAQ hit fresh all-time highs

US stock indices closed higher yesterday. The S&P 500 rose by 0.83%, while the Nasdaq 100 added 1.02%. The Dow Jones Industrial Average advanced by 0.77%. During today's Asian trading

Jakub Novak 12:59 2025-07-04 UTC+2

Update on US stock market on July 4

S&P500 Snapshot of major US stock indices on Thursday: Dow: +0.8% NASDAQ: +1% S&P 500: +0.8% S&P 500 closes at 6,279, within a trading range of 5,900 to 6,400

Jozef Kovach 12:47 2025-07-04 UTC+2

Update on US stock market on July 3. SP500 and NASDAQ update their highs

The S&P 500 rose by 0.47%, while the Nasdaq 100 gained 0.94%. The industrial Dow Jones, however, slipped by 0.02%. Asian stock indices posted modest gains ahead of the upcoming

Jakub Novak 13:15 2025-07-03 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.