Forex Analysis & Reviews: 27.01.2022 - US premarket on January 27:...

27.01.2022 02:34 PM

US premarket on January 27: Time to buy cheap US stocks

US stock index futures declined in early trading on Thursday, but then returned to the upside gradually recovering from yesterday's sell-off. While the Federal Reserve's updates did not come as a surprise to investors, it was not very positive and after Jerome Powell's speech, they decided to go back to January 24 low again. However, their strength was not enough to do so. The Dow Jones futures were down by 61 points in highly volatile trading, recovering from a drop of nearly 500 points. S&P 500 and Nasdaq 100 futures were down by 0.1%.

As for the results of yesterday's vote itself, it was unanimous. Philadelphia Fed President Patrick Harker was voted in as deputy to the Boston Fed, which currently has no president, and the three vacancies on the Board of Governors reduced the number of voters at this meeting to nine. The officials kept the key interest rate target unchanged at 0.00%-0.25%, as expected.

Chairman Jerome Powell stunned the markets with comments that the Fed has "quite a bit of room to raise interest rates" before it negatively affects the employment market. Against this backdrop, given that many investors fear just such a scenario, stocks fell sharply. The 10-year Treasury bond yield rose above 1.8% after the statements. Powell also did not rule out taking similar steps at each subsequent meeting to combat the all-time highest inflation."The committee is of a mind to raise the federal funds rate at the March meeting assuming that the conditions are appropriate for doing so," Powell said in a news conference.

Experts note that despite some clarity on how the Fed will begin the process of tightening monetary policy, the outcome of the meeting did not provide the necessary clarification on the timing and extent of policy changes. In a separate statement, the Fed said that the balance sheet reduction process would begin after rates are raised to the necessary level. Powell said nothing about the specific timing of the start of the balance sheet reduction, only adding that the meeting did not decide when these actions should be taken.

Notably, such high volatility plays on investors' side, as they get a chance to buy a lot of stocks at good prices. Since the end of last year, the market has been showing the most aggressive sentiment, hitting the companies that react very sharply to any change in the cost of borrowing, which are all the technology companies in the NASDAQ index. Such high volatility is unlikely to last for a long time, and given that the US economy and labor market are showing good performance, you can count on a quick market recovery before another turbulence in spring.

At the premarket, shares of some tech companies were able to strengthen. For example, Netflix jumped by more than 4% after Bill Eckman of Pershing bought 3.1 million shares. Tesla was down by 1.5%, offsetting yesterday's 2% gain after a strong earnings report. Intel, meanwhile, lost 2% amid the company's fairly strong revenues.

There are also a large number of reports scheduled for today. Mastercard, Blackstone, Southwest Air, and JetBlue are the ones to monitor. The Q4 numbers will be released before the start of the trading day.

The Q4 GDP report will also be important, as well as durable goods orders and jobless claims. Economists expect the economy to grow at an annualized rate of 5.5% in the last three months of 2021.

As for the technical picture of the S&P500 index

The market has performed a strong correction. The growth and volatility are expected to remain quite high. Most likely, we may see another slide down below $4,312, which is likely to lead to a decline to the area of $4,265 and even touch $4,212, where I recommend making purchases. In case of growth above $4,378, we may expect a jump of the index to $4,449, where it is better to take profit, as the trading instrument is likely to trade sideways within the channel of $4,223 - $4,449 for a long time.

You have already liked this post today

*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

Se você tiver alguma dúvida sobre conteúdo, por favor, entre em contato com editorial-board@instaforex.com

Stock Markets

Jakub Novak,
Especialista em análise na InstaForex
© 2007-2025

Mais artigos deste autor

Inscrição do e-mail

EURUSD

Euro vs US Dollar

Selecionar intervalo de tempo

min

hora

horas

dia

Comece a negociar

Ganhe com as variações das taxas das criptomoedas com a InstaForex.

Baixe o MetaTrader 4 e abra a sua primeira operação.

Recommended Stories

Atualização do mercado de ações dos EUA. As tarifas de Trump derrubam as ações dos EUA. A recessão é realista, mas as cotações atuais do mercado são ótimas para comprar

Drama total do mercado: Dólar, petróleo, S&P 500 e grandes empresas de tecnologia estão em queda

Ponto de Ruptura: Mercados desmoronam com início de baixa nos EUA

Mercado acionário dos EUA em 4 de abril: SP500 e NASDAQ sofrem grandes perdas

Ações caem drasticamente à medida que as tarifas amplas aumentam o risco de recessão

Atualização do mercado acionário dos EUA: Trump impõe tarifas agressivas e abala os mercados globais

Mercado de ações em 2 de abril: S&P 500 e NASDAQ atingem novas mínimas anuais

Atualização sobre o mercado de ações dos EUA em 2 de abril: SP500 e NASDAQ recuperam sua posição antes de evento crucial

Mercados dos EUA mostram resistência apesar das preocupações com tarifas e da fraqueza econômica

Mercado de ações dos EUA: pico a partir de um forte suporte. Crescimento realista

Principais análises