empty
20.01.2022 01:54 PM
US premarket on January 20, 2022

Early on Thursday, US stock market futures increased slightly following Wednesday's massive sell-off, as investors remain cautious amid growing US treasury bond yields and releases of corporate financial statements. The Dow Jones Industrial Average futures gained 123 points or 0.22%, the S&P 500 futures increased by 0.66%, and the NASDAQ 100 futures rose by 0.42%.

This image is no longer relevant

The Dow Jones index closed on Wednesday in negative territory, falling by 339 points or 0.9% in its fourth straight day of losses. The S&P 500 and the NASDAQ Composite declined by 1.15%. Strong revenues data from Bank of America and Morgan Stanley did not boost the US stock market.

The yield of US Treasury securities increased once again amid market overvaluation, as the Federal Reserve prepares to tighten its monetary policy and hike the interest rate. Next week, the Fed will assess the state of the economy and the inflation rate. The regulator will also signal its future plans. The Fed is unlikely to change the interest rate at this point, although economists see 4 hikes of 0.25 percentage points until the end of the year.

The yield of 2-year US treasury notes, which is connected to the federal funds rate, is currently near 1.04%. The 10-year benchmark bond yield remains at 1.84%.

Today, more major US banks release their earnings reports - Regions Financial and Fifth Third are due to release their Q4 2021 earnings. Union Pacific and Baker Hughes are also set to announce their quarterly earnings. Netflix's report, which is expected to be strong, will be released after the closing bell. The company's stock has already gained 1.0% during the premarket.

This image is no longer relevant

Today, US existing home sales data will be released - home sales are expected to rise by 0.3% to 6.48 million. The Federal Reserve Bank of Philadelphia would also release its manufacturing survey for January - the manufacturing index, representing the relative level of general business conditions in Philadelphia, is forecasted to rise to 18.5 points. Earlier, the NY Empire State manufacturing index declined into negative territory, reaching -0.5%.

The extremely high volatility in the market could persist further, but it is no cause for panic, economists note, as the economy and the markets would soon adjust to the changed interest rates.

Shares of United Airlines declined by about 1% during the premarket after the company released its quarterly report and stated that the Omicron variant would be detrimental to the company's growth. Furthermore, increases to its flight schedules were pushed back due to Omicron.

This image is no longer relevant

Ford Motor stock fell by 2.5% during the premarket. In 2021, the company's share price jumped by 130% over the year on expectations of EV market growth. However, the stock is likely overvalued, analysts warn.

On the technical side, regaining $4,598 would be a serious challenge for the S&P 500 and bullish traders. If the index breaks through $4,598 and closes above it, the bullish momentum could propel it towards strong resistance at $4,665. From there, the index could regain $4,722 and $4,818 in the future. If the S&P 500 remains below $4,598, traders are advised to wait for the index to fall to the support levels of $4,536 and $4,470.

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 May 9. SP500 and NASDAQ trading higher

At the close of the last regular session, US stock indexes ended in the green. The S&P 500 rose by 0.58%, the Nasdaq 100 gained 1.07%, and the industrial

Jakub Novak 15:36 2025-05-09 UTC+2

S&P 500 Forecast for May 9, 2025

The U.S. stock market has overcome uncertainty and is set for growth towards new all-time highs. The price has settled above the indicator lines of the Balance Line

Laurie Bailey 05:15 2025-05-09 UTC+2

Update on US stock market on May 8. SP500 and NASDAQ grow after Fed's policy meeting

US benchmark stock indices closed the previous regular session with gains. The S&P 500 rose by 0.43%, the Nasdaq 100 added 0.27%, and the industrial Dow Jones climbed 0.70%. Futures

Jakub Novak 16:22 2025-05-08 UTC+2

Update on US stock market on May 7. Fed's policy decision on investors' radars

S&P500 Update on US market: pullback ahead of the Fed's policy meeting Snapshot of major US stock indexes on Tuesday: Dow -1%, NASDAQ -0.9%, S&P 500 -0.8%, S&P

Jozef Kovach 11:14 2025-05-07 UTC+2

Update on US stock market on May 6, 2025

S&P500 Overview on May 6 Snapshot of key US majo stock indices on Monday: * Dow: -0.2%, * NASDAQ: -0.7%, * S&P 500: -0.6% * S&P 500 closed at 5,650

Jozef Kovach 16:47 2025-05-06 UTC+2

US stock market still growing

S&P500 Update on US stock market: uptrend still going on Snapshot of major US indices on Friday: Dow +1.4% NASDAQ +1.5% S&P 500 +1.5% S&P 500 closed at 5,686, trading

Jozef Kovach 11:28 2025-05-05 UTC+2

US market: modest but positive move

S&P 500 Summary for May 2 The US market showed a modest but steady rise. On Friday, the main US indices closed in positive territory: the Dow Jones rose

Jozef Kovach 13:38 2025-05-02 UTC+2

US stock market on May 2: S&P 500 and Nasdaq still battling volatility

US stock indices ended the previous regular session higher. The S&P 500 rose 0.63%, while the Nasdaq 100 gained 0.52%. The Dow Jones Industrial Average edged up by 0.21%

Jakub Novak 13:33 2025-05-02 UTC+2

US market: GDP shrinks, but Wall Street climbs

S&P 500 Overview for May 1 GDP contracts, but US market climbs Key US indices on Friday: Dow +0.4%, NASDAQ -0.1%, S&P 500 +0.2%, S&P 500: 5,560, trading range: 5,150–5,800

Jozef Kovach 12:19 2025-05-01 UTC+2

Stock Market for April 30th: S&P 500 and NASDAQ Continue Clinging to Any Positive News

At the close of the previous regular session, U.S. stock indices finished in positive territory. The S&P 500 rose by 0.58%, and the Nasdaq 100 gained 0.55%. The Dow Jones

Jakub Novak 11:10 2025-04-30 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.