empty
07.08.2023 02:07 PM
US premarket on August 7: US stock market under pressure again

Futures on US stock indexes opened with a slight increase after another Friday sell-off, driven by a decreased appetite for risk following weak US labor market data. Treasury bond yields rose both on Friday and Monday during morning trading. S&P 500 futures gained 0.2%, while the yield on 10-year Treasury bonds increased by 8 basis points. NASDAQ futures rose by 0.3%. European stock indexes declined as Germany's industrial production fell to a six-month low in June, highlighting economic weakness.

This image is no longer relevant

Meanwhile, investors continue to analyze the perplexing signals from the Friday employment report in the US. According to the data, wages exceeded economists' forecasts, despite a slowdown in wage growth. Unemployment rate declined even further, but the number of new jobs was lower than economists' predictions.

Considering the July rally, which happens almost every year, August promises to be calm, and it is not surprising that investors are taking profits, leading to market weakness. Market sentiments for this week will depend on new data. It will start with Germany's consumer price index and continue with the US consumer price index on Thursday and UK GDP data on Friday. The US core consumer price index is predicted to rise by 0.2% in July, the slowest growth in 2.5 years.

German bonds fell after the Bundesbank's statement on Friday about halting interest payments on domestic government deposits. This unexpected move caught traders off guard, leading to a sell-off in 30-year debt, resulting in the highest yield since January 2014.

Meanwhile, representatives of the US Federal Reserve say that further rate hikes may be necessary. Over the weekend, Michelle Bowman stated, "We don't think central banks will get the rise in unemployment rate and sustained moderation in wage growth in the coming year that they hope to see."

This image is no longer relevant

In Asia, the yen fell for the first time in four days after the minutes showed that one of the Bank of Japan's members voted for the central bank to provide greater flexibility in managing the yield curve at the July meeting.

Regarding the S&P 500 index, demand for the trading instrument remains relatively low. Bulls may continue the uptrend, but they need to settle above $4,515. From this level, a surge to $4,539 may occur. An equally important task for bulls would be to control $4,557, which would strengthen the bullish market. In the event of a downward move due to decreased risk appetite, bulls will have to protect $4,488. A breakthrough would quickly push the trading instrument back to $4,469 and $4,447.

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

Update on US stock market on June 23. US stock indices close mixed. Oil trades higher amid geopolitical tensions

Last Friday, US stock indices closed mixed. The S&P 500 fell by 0.22%, and the Nasdaq 100 lost 0.55%, while the industrial Dow Jones gained 0.08%. Today, futures for European

Jakub Novak 11:09 2025-06-23 UTC+2

Uptrend in US stock market about to crack. Will market maintain bullish momentum until end of summer?

The US stock market maintains an appearance of stability, but the foundation beneath this calm may prove fragile. Indices remain near historic highs. Nonetheless, a potentially explosive combination is brewing

Anna Zotova 17:09 2025-06-20 UTC+2

Update on US stock market on June 20. SP500 and NASDAQ open with gains

Yesterday, US financial markets were closed. US stock indices ended the electronic trade mixed: the S&P 500 slipped by 0.03%, the Nasdaq 100 gained 0.13%, and the Dow Jones Industrial

Jakub Novak 11:54 2025-06-20 UTC+2

S&P 500 Forecast for June 20, 2025

For the past six weeks, the price has been unsuccessful in testing the resistance of the MACD indicator line on the weekly chart. However, the recent consolidation above the 5908

Laurie Bailey 07:16 2025-06-20 UTC+2

Calm above, crisis below: markets weigh oil, inflation, and Middle East risks

The US stock market is showing mixed performance, reflecting investors' ambivalent outlook after the holiday break. In the latest trading session, the S&P 500 slipped 0.03%, while the Nasdaq rose

Anna Zotova 13:29 2025-06-19 UTC+2

Update on US market on June 19. Federal Reserve downgrades its economic outlook. Stock market awaits correction

S&P500 Snapshot of major US stock indices on Wednesday Dow -0.1%, NASDAQ +0.1%, S&P 500 -0.1%, the S&P 500 closed yesterday at 5,981 trading within the range of 5,600

Jozef Kovach 12:43 2025-06-19 UTC+2

Stock Market as of May 19th: S&P 500 and NASDAQ Decline After Fed Meeting

At the end of the previous regular session, U.S. stock indices closed mixed. The S&P 500 fell by 0.03%, while the Nasdaq 100 rose by 0.13%. The Dow Jones Industrial

Jakub Novak 10:54 2025-06-19 UTC+2

Stock Market on May 18th: S&P 500 and NASDAQ

At the close of the most recent regular session, U.S. stock indices ended in decline. The S&P 500 fell by 0.84%, while the Nasdaq 100 dropped by 0.91%

Jakub Novak 11:53 2025-06-18 UTC+2

All eyes on Powell, but geopolitics may steal spotlight

The market is at a standstill. With the Fed's decision looming and growing political pressure from two fronts — monetary and geopolitical — market participants are bracing for a sharp

Anna Zotova 11:27 2025-06-18 UTC+2

Playing on edge: can markets ignore geopolitics for another day?

The US stock market continues to disregard geopolitical realities. Indices have approached key levels and are ready for a breakout. The only question is, in which direction? If upcoming events

Anna Zotova 13:27 2025-06-17 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.