empty
03.08.2023 02:27 PM
US premarket on August 3: US stock market continues to decline

Futures on US stock indexes opened with a sharp drop. S&P 500 futures decreased by 0.5% but partially recovered from the downside movement, while Nasdaq 100 futures tumbled by 0.6%. Treasury bonds are also under pressure, leading to a nine-month high in 10-year bond yields.

This image is no longer relevant

The rapid rise in Treasury bond yields over the past four days has negatively affected risk assets, as investors returned to interest rate concerns. Recent economic data related to the job market and today's report on unemployment claims may trigger a larger sell-off in the stock markets. Investors will closely monitor the earnings reports of Apple Inc. and Amazon.com Inc. later, which are likely traders' only hope for market recovery in the current conditions.

Considering the recent rally of US stocks, especially Nasdaq, sensitivity to yield increases remains. Every time yields rise, it leads to corrections in the stock markets, as shown in recent days when strong job market news led investors to expect an aggressive policy by the US Federal Reserve. As a result, the 10-year Treasury yield rose by five basis points to 4.13%. Sales followed discussions that the US Treasury will issue securities worth $103 billion next week, slightly more than anticipated. It is not surprising that earlier this week, Fitch Ratings downgraded the US credit rating to AA+ due to the country's relatively high budget deficit compared to GDP.

Some believe that long-term debt appears overbought in terms of supply and demand, and it is difficult to foresee how the market will handle increased issuance without significant interest rate hikes in the future.

Regarding the European market, the Stoxx 600 index showed its sharpest three-day decline since March. Infineon Technologies AG shares fell by 12% after disappointing forecasts from the German chipmaker. Deutsche Lufthansa AG shares declined due to debt concerns and higher company expenses.

This image is no longer relevant

The Bank of Japan had to intervene again in the bond market to slow down the rise in sovereign bond yields, demonstrating its commitment to curbing sharp rate surges, even if it allows some room for their growth. The yen strengthened against the US dollar by 0.3%.

As for the S&P 500 index, demand for the trading instrument remains relatively low. Bulls have a chance to continue the uptrend, but they need to return the price above $4,515. From that level, there could be a surge to $4,539. Another priority for bulls will be to control $4,557, which would strengthen the bullish market. In case of a decline due to reduced risk appetite, bulls should protect $4,488. A breakthrough of this level may 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: real reason behind Trump's tariffs revealed. Part 1

S&P 500 Overview for April 8 US market: real reason behind Trump's tariffs revealed. Part 1 Major US indices on Monday: Dow -0.9%, NASDAQ +0.1%, S&P 500 -0.2%, S&P

Jozef Kovach 13:50 2025-04-08 UTC+2

US market sees sharp rebound. Part 2

S&P 500 Overview for April 8 US market sees sharp rebound. Part 2 Major US indices on Monday: Dow -0.9%, NASDAQ +0.1%, S&P 500 -0.2%, S&P 500: 5,062, trading range

Jozef Kovach 13:04 2025-04-08 UTC+2

BlackRock CEO: sell-off may not be over yet

In an interview yesterday, BlackRock CEO Larry Fink warned that equity markets may still have room to fall, possibly by as much as 20%. However, he also framed the decline

Jakub Novak 12:27 2025-04-08 UTC+2

Point of no return: markets break down as US enters bear phase

The US equity market is under pressure as futures spiral, the VIX surges, and Treasury yields plunge—signaling a potential structural crisis. Panic marks the start of Q2 The first week

Anna Zotova 13:29 2025-04-07 UTC+2

Full-blown market drama: USD, Oil, S&P 500, and Big Tech all crashing

Financial markets are shaking again: the S&P 500 is tumbling so fast that veterans recall the COVID-era crash, oil is taking a one-two punch from Trump and OPEC+, the dollar

Аlena Ivannitskaya 12:10 2025-04-07 UTC+2

Recap of US stock market on April 7. SP500 and NASDAQ open new week sharply in red

The US benchmark stock indices closed the New York session on Friday in the red. The S&P 500 plunged by 5.97%, while the Nasdaq 100 lost 5.92%. The industrial

Jakub Novak 10:34 2025-04-07 UTC+2

Update on US stock market. Trump's tariffs crash US stocks. Recession realistic, but current market quotes great for buying

S&P500 Market update on April 7. Snapshot of the US major stock indices on Friday:* Dow -5.5%* NASDAQ -5.8%* S&P 500 -6% S&P 500 is trading at 5,074 within

Jozef Kovach 09:40 2025-04-07 UTC+2

Stocks slide sharply as broad tariffs raise recession risk

S&P 500 US equities plunged on Thursday as President Donald Trump's sweeping new tariffs triggered a sharp sell-off and reignited fears of a global recession. The Dow fell by 4%

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

US stock market on April 4: SP500 and NASDAQ suffering heavy losses

As a result of yesterday's regular session, US stock indices closed in the red. The S&P 500 plummeted by 4.84%, while the Nasdaq 100 lost 5.97%. The industrial Dow Jones

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

Update on US stock market: Trump strikes at global trade with tariffs and crashes markets

S&P500 Update on April 03 Snapshot of benchmark US stock indices on Wednesday: Dow, NASDAQ, S&P 500: all -2% S&P 500 at 5,535 in the range of 5,500 to 6,000

Jozef Kovach 11:57 2025-04-03 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.