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14.02.2023 08:49 PM
Investors are waiting for another stock market crash

The American inflation data, which significantly influences the short-term market direction, is currently being studied by the whole trading community. In the meanwhile, I would like to briefly discuss the published results of a survey of fund managers performed by Bank of America Corp.

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Although stock markets are progressively increasing amid optimism about a stronger global economy and a falling inflation rate, the figures show that the majority of investors do not think this growth will endure for very long. The observed growth is only a correction, according to about 66% of respondents to the bank's February survey, and the indices will soon crash and update the lows. And this is true even if the share of investors anticipating a worldwide recession has decreased to 24% from a peak of 77% in November.

The survey also revealed that economic growth pessimism is at its lowest level in a year, and 83% of fund managers expect inflation to continue to fall over the coming 12 months. This creates an odd situation where, on the one hand, they say one thing but, in reality, something entirely different is happening. Add to that the possibility that the Federal Reserve System will slow the pace of its aggressive program. It is clear when someone is not telling you something.

Premarket

Avis increased by 2.5% after outperforming all analyst predictions according to Refinitiv's survey. In contrast to analysts' forecasts of $6.79 per share on revenue of $2.69 billion, the company's report reveals adjusted earnings per share of $10.46 on revenue of $2.77 billion. High demand was mentioned by the corporation and was said to still be there in the current quarter.

According to the results of regular sales, the securities of Amkor Technology, the shares of the semiconductor business, were able to recover from yesterday's decline and lost only 1.1%, even if real revenue data did not reach economists' projections. Additionally, the business gave a first-quarter prediction that fell short of analysts' projections.

Software company Cadence Design's shares increased 5% in the premarket, following yesterday's surge that followed the release of a report that exceeded economists' expectations. Additionally, the business produced a solid first-quarter estimate for this year that surpassed all projections.

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On the strength of quarterly results that beat analysts' estimates for earnings and revenue per share, Palantir securities increased by 20%. Additionally, Palantir stated that it anticipates making its first net profit in the first quarter, which may total $ 31 million.

Regarding the S&P 500's technical outlook, the pressure on riskier assets has slightly subsided. Only if the bulls can rise again over $4,150 today will the index be able to continue its recovery. The bulls' control over $4,185, which will put an end to the bear market, will be no less of a target. After that, we can anticipate an upward movement that is more confident, with the target of supporting the trading instrument at $4,208. The level of $4,229 is a little higher and will be challenging to surpass. Buyers are only required to declare themselves in the area of $4,116 in the case of a downward movement against the backdrop of rising US inflation and a lack of demand. When it breaks down, the trading instrument will move quickly to $4,091 and open the way to $4,064.

Jakub Novak,
Analytical expert of InstaForex
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