empty
20.07.2023 01:40 PM
US premarket on July 20: First warning signs for investors

On Thursday, futures on US stock indices slumped as disappointing tech company earnings cast doubt on further growth in the tech sector in the second half of the year.

This image is no longer relevant

Nasdaq 100 futures dropped by 0.7% following the sell-off of Netflix Inc. stocks, prompted by no sales estimates and revenue forecast for the third quarter, which did not meet economists' expectations. The company stated that it is still too early to assess the impact of its strict password-sharing measures and advertising-based app revenues. Tesla Inc. shares also fell after second-quarter profits decreased, indicating a reduction in the electric vehicle manufacturer's margin.

After such news, traders clearly booked profits following the rapid rally that led Nasdaq's high-tech index to grow by 45% this year, outpacing S&P 500's 19% growth.

Experts note that the expected returns of several leading tech companies are exaggerated and may be a harbinger of a decline. The reasonable return of the S&P500 index becomes more proportional to NASDAQ due to several mega-cap tech company stocks that surged amid AI optimism and are now facing problems, which is a classic sign of a concluding bullish phase. Considering the expected recession in the US this year, regardless of what politicians say, the drop in stock indices from their peaks can be swift.

In Europe, shares of European tech companies, including ASML Holding NV, fell after Taiwan Semiconductor Manufacturing Co. lowered its profit forecast.

US Treasury bonds also fell, pausing the rally caused by rumors that a decrease in inflation would allow the Federal Reserve to halt the rate-tightening cycle.

The yuan rose by 0.7% against the US dollar, becoming the most profitable currency in Asia after the People's Bank of China intervened in its exchange rate. China's efforts to boost economic growth, from rate reductions to easing regulations on tech companies, have done little to support the growth of the world's second-largest economy.

This image is no longer relevant

In the oil market, after a significant drop yesterday, there is now a slight demand. Gold continues to gain, heading to $2,000.

As for the S&P 500 index, demand for the trading instrument remains. Bulls have a chance to continue the uptrend, but they need to settle above $4,582. From this level, there could be a surge to $4,609. An equally important task for bulls would be to control $4,637, which would strengthen the bull market. In case of a downward movement due to decreased risk appetite, bulls should protect $4,557. A breakthrough will quickly push the trading instrument back to $4,539 and $4,515.

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 May 30th: S&P 500 and NASDAQ Resume Decline

At the close of the latest regular session, U.S. stock indices posted modest gains. The S&P 500 rose by 0.40%, the Nasdaq 100 added 0.39%, and the Dow Jones Industrial

Jakub Novak 10:45 2025-05-30 UTC+2

US Market: Court overturns trump tariffs

S&P 500 Market overview on 29.05 A federal court in the US has struck down all of former President Trump's trade tariffs. Major US indices on Wednesday: Dow -0.6%, NASDAQ

Jozef Kovach 12:53 2025-05-29 UTC+2

Stock Market on May 29th: S&P 500 and Nasdaq Pause Their Rally

At the close of the most recent regular trading session, U.S. stock indices posted modest losses. The S&P 500 declined by 0.56%, the Nasdaq 100 fell by 0.71%

Jakub Novak 11:04 2025-05-29 UTC+2

Navigating dollar surge and tech turmoil: key entry points for traders

Volatility has returned to financial markets. The dollar staged a sharp rally, driving down the yen, euro, and Swiss franc, but beneath the surface lies a web of unsettling signals

Аlena Ivannitskaya 11:44 2025-05-28 UTC+2

Update on US stock market on May 28

S&P500 US stock market is showing buoyant growth Snapshot of major US stock indices on Tuesday: Dow Jones: +1.8% NASDAQ: +2.5% S&P 500: +2.1% S&P 500 at 5,921

Jozef Kovach 10:38 2025-05-28 UTC+2

Stock Market on May 28th: S&P 500 and NASDAQ Continue Their Rapid Rally

Following the most recent regular session, U.S. stock indices closed with strong gains. The S&P 500 rose by 2.00%, while the Nasdaq 100 added 2.47%. The Dow Jones Industrial Average

Jakub Novak 09:43 2025-05-28 UTC+2

S&P 500 Forecast for May 28, 2025

The U.S. stock index, the S&P 500, has completed the correction that began on May 20. A sign of its completion is the price breakout above the inner boundary

Laurie Bailey 05:08 2025-05-28 UTC+2

Domestic Demand and Attractive Prices

The wave structure on the 24-hour chart for the #SPX instrument is generally easy to interpret. The global five-wave pattern doesn't even fit within the terminal window at the smallest

Chin Zhao 11:56 2025-05-27 UTC+2

Stock Market Update for May 27th: S&P 500 and NASDAQ Still Have Growth Potential

Following the most recent regular session, U.S. stock indices closed lower. The S&P 500 fell by 0.67%, while the Nasdaq 100 lost 1.00%. The industrial Dow Jones dropped by 0.61%

Jakub Novak 11:08 2025-05-27 UTC+2

Update on US stock market on May 27. Market picking up steam

S&P500 Snapshot of key US stock indices on Monday: Dow: -0%, NASDAQ: -0%, S&P 500: -0%, S&P 500 at 5802, with a trading range of 5400–6200. On Monday, US index

Jozef Kovach 10:40 2025-05-27 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.