empty
08.08.2023 02:10 PM
US premarket on August 8: Banking sector under pressure

Futures on US stock indices opened with a decline and are trading in the negative territory ahead of the regular session. Meanwhile, bond yields have dropped worldwide due to news about Italian banks, and economic difficulties in China and the US, which heightened concerns about the financial system, its safety, and global economic stability.

The yield on 10-year Treasury bonds fell by 10 basis points, and rates in Germany decreased by 15 basis points. The US dollar index increased by 0.5%. S&P500 futures are trading in the red zone, down 0.4%, while NASDAQ lost about 0.5%.

This image is no longer relevant

Volatility surged in European markets, particularly affecting the banking sector following news of Italy introducing a new tax on excess profits. As a result, UniCredit SpA and Intesa Sanpaolo SpA stocks dropped by more than 7%. Meanwhile, Moody's downgraded credit ratings of 10 small and medium-sized US banks and warned about risks related to commercial real estate lending. The agency will also focus on signs of stress in the industry, as rising interest rates force banks to pay more for deposits and increase financing costs from alternative sources.

Investor sentiment worsened after China published data indicating an economic growth slowdown: exports fell to levels seen in early 2020, and imports were also affected. The Hang Seng China Enterprises index dropped by about 2%. This led to declining commodity prices, with oil and copper losing nearly 2%.

The MSCI Emerging Market stock index reached a four-week low and is poised to break its 50-day moving average. There is some positive news though. The reduced demand for commodities and goods due to the economic growth slowdown will likely lead to lower global commodity prices and slightly ease inflationary pressures. However, this might not be enough for central banks, which are more focused on combating high core inflation, excluding energy prices.

This image is no longer relevant

Regarding the S&P 500 index, the demand for the trading instrument remains relatively low. Bulls have a chance for a continued uptrend, but they need to settle the price above $4,515. From that level, a leap to $4,539 may occur. Bulls should maintain control above $4,557, strengthening the bullish market. In case of a downside movement amid reduced risk appetite, bulls should protect $4,488. A breakthrough will 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

US market: Powell expresses concerns about economy. Marker drops

S&P 500 Report for 17.04 US market: Powell warns of economic slowdown. stocks drop Major US indices on Wednesday: Dow -1.7%, NASDAQ -3.1%, S&P 500 -2.2%. The S&P 500 closed

Jozef Kovach 11:32 2025-04-17 UTC+2

US stock market update on April 17. SP500 and NASDAQ plummet after Powell's remarks

Following the previous regular session, US stock indices closed with a sharp decline. The S&P 500 fell by 2.24%, the Nasdaq 100 dropped by 3.07%, and the Dow Jones Industrial

Jakub Novak 11:31 2025-04-17 UTC+2

US stock market on April 16: S&P 500 and NASDAQ resume declines

Following the previous regular session, US stock indices closed slightly lower. The S&P 500 slipped by 0.17%, the Nasdaq 100 edged down 0.05%, and the Dow Jones Industrial Average dropped

Jakub Novak 12:22 2025-04-16 UTC+2

US market remains resilient despite tariff turbulence from Trump

S&P 500 Overview for April 16 The US market remains resilient despite tariff turbulence from Trump Major US indices on Tuesday: Dow -0.4%, NASDAQ 0%, S&P 500 -0.2%, S&P

Jozef Kovach 11:50 2025-04-16 UTC+2

S&P 500 and Nasdaq 100: direct signals from earnings and geopolitics

Tuesday's premarket opens with uncertainty, a state that often precedes a storm rather than calm on Wall Street. The S&P 500 futures are sliding toward 5,420 after a strong Monday

Anna Zotova 11:52 2025-04-15 UTC+2

US market at crossroads: up or down?

Overview for April 15 US market at crossroads: up or down? Major US indices on Monday: Dow +0.8%, NASDAQ +0.6%, S&P 500 +0.8%, S&P 500: 5,405, trading range: 5,100–5,800. Stocks

Jozef Kovach 11:52 2025-04-15 UTC+2

US stock market on April 15: S&P 500 and NASDAQ slow their gains

At the close of the previous regular session, US stock indices ended in positive territory. The S&P 500 rose by 0.79%, while the Nasdaq 100 gained 0.64%. The Dow Jones

Jakub Novak 11:34 2025-04-15 UTC+2

Markets depend on Trump's actions: calm seems to be fantasy

Global markets have been swept up in a tariff whirlwind, and the eye of the storm is once again in Washington. Trump, with a stroke of his pen, sends indices

Аlena Ivannitskaya 14:28 2025-04-14 UTC+2

US stock market gains ground as Trump postpones tariffs on some items

S&P500 Snapshot of the benchmark US stock indices on Friday: * Dow Jones: +1.6% * NASDAQ: +2.1% * S&P 500: +1.8%, now at 5,268, trading in a range between 4,800

Jozef Kovach 11:18 2025-04-14 UTC+2

Update on US stock market on April 14. SP500 and NASDAQ regain their footing amid tariffs pause on electronics

US major stock indices closed the regular North American session on Friday in the green. The S&P 500 rose by 1.81%, while the Nasdaq 100 gained 2.06%. The industrial

Jakub Novak 10:54 2025-04-14 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.