empty
10.08.2023 01:54 PM
US premarket for August 10: Stock market holds steady ahead of inflation data

US stock index futures kicked off the day with gains. S&P 500 futures rose by 0.3%, while NASDAQ gained 0.4%. Stoxx Europe 600 saw a 0.3% jump. France's CAC40 surged by 1% following China's travel restrictions lifted.

This image is no longer relevant

Clearly, market sentiment remains positive as investors anticipate key US inflation data. This information could provide insights into the Federal Reserve's next moves. The US Consumer Price Index report holds significant weight for investors gauging the possibility of a halt in interest rate hikes by the Fed. Projections suggest the data might signal a second consecutive decrease in core inflation, still far from the Fed's 2% target. Economists foresee a mere 0.2% growth in the core Consumer Price Index in July, following a similar increase in June.

Meanwhile, a higher-than-expected reading will likely trigger short-term volatility in stocks and bonds, intensifying pressure on stock indices. However, many economists predict this will not significantly alter expectations regarding the peak of interest rates by the Fed. This is because various indicators suggest economic disinflation, a point underscored by Fed officials this week. They believe the interest rate might be near its peak but have not ruled out a final quarter-point increase.

The catalyst for this scenario would be inflation. Recent sharp surges in energy prices could negatively impact the overall indicator, which economists estimate will grow by 0.3% in July compared to the previous month. Commodities have rebounded notably after a first-half dip. Crude is trading near its nine-month high, with West Texas Intermediate futures surpassing $84 per barrel after a 3% growth over the past two sessions.

China's Ministry of Culture and Tourism announced the lifting of group travel bans to countries like the US, UK, Australia, South Korea, and Japan. According to Goldman Sachs Group Inc.'s latest estimates, Chinese buyers account for around 25% of luxury goods purchases in Europe, including those made by tourists.

This image is no longer relevant

Meanwhile, treasury bonds remained stable, yielding 4% for the 10-year bonds. The latest major US Treasury bond auction by the Fed is scheduled for later this week, featuring 30-year notes. Despite recent concerns of investor resistance, demand for debt has remained high.

As for the S&P 500 index, demand for the trading instrument has returned, but trading remains within a sideways channel. Bulls have a chance to extend the uptrend, but they need to climb back above $4,515. This move could propel the index to $4,539. Another key target for bulls is maintaining control above $4,557, solidifying their market position. In the event of downward movement due to a decrease in risk appetite, bulls should protect $4,488. A breakthrough would swiftly send the trading tool back to $4,469, paving the way to $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

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

US stock market on April 11: S&P 500 and Nasdaq plunge

US equity markets ended Thursday's regular session with steep losses. The S&P 500 dropped 3.46%, the Nasdaq 100 fell 4.31%, and the Dow Jones Industrial Average declined 2.50%

Jakub Novak 13:41 2025-04-11 UTC+2

Update on US stock market on April 11. Major pullback after strong rally. Market regains consciousness.

S&P500 Snapshot of the US benchmark stock indices on Thursday: * Dow -2.5%, * NASDAQ -4.3%, * S&P 500 -3.5% The S&P 500 closed at 5,268, within the range

Jozef Kovach 12:00 2025-04-11 UTC+2

Stocks skyrocket after Trump's tariff delay

The US stock market just experienced one of the most powerful waves of optimism in recent years. On Wednesday, following a statement from President Donald Trump, major stock indices posted

Anna Zotova 15:10 2025-04-10 UTC+2

US market rebounds strongly, but Trump's trade war with China remains unresolved

S&P 500 Overview for April 10 US market rebounds strongly, but Trump's trade war with China remains unresolved Major US indices on Wednesday: Dow +8%, NASDAQ +12%, S&P 500 +9.5%

Jozef Kovach 11:45 2025-04-10 UTC+2

Update on US stock market on April 10. SP500 and NASDAQ grow like mad

At the close of yesterday's regular trading session, US stock indices ended with solid gains. The S&P 500 jumped by 9.52%, while the Nasdaq 100 surged by 12.15%. The industrial

Jakub Novak 11:31 2025-04-10 UTC+2

US and China engaged in fierce battle: markets slump, high-tech stocks bruised, gold stands tall

Global markets are once again in turmoil: the escalation of the trade war between the US and China has slammed stock markets, gold is breaking records, Meta is mired

Аlena Ivannitskaya 15:56 2025-04-09 UTC+2

US markets attempt to stabilize at key support levels

S&P 500 The market tries to hold support Main US indices on Tuesday: Dow -0.8%, NASDAQ -2.2%, S&P 500 -1.6%, S&P 500 at 4983, range 4800–5700. It was another volatile

Jozef Kovach 10:44 2025-04-09 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.