empty
25.10.2022 01:58 PM
US Premarket on October 25: Stock market cools down a bit after good reports

US stock index futures fell in early morning trading on Tuesday as traders continued to get acquainted with the rather mixed reports of companies on corporate earnings. Do not forget about the meeting of the Federal Reserve System on monetary policy, which will take place next week.

This image is no longer relevant

Futures for the S&P 500 and Nasdaq 100 moved into the red zone after rising on the back of strong results from companies that reported yesterday. Among the companies reported today are The Coca-Cola Co., General Motors Co., and United Parcel Service Inc. Although their estimates exceeded analysts' forecasts, 3M Co. and General Electric Co. showed a negative result. Today, we are waiting for Alphabet Inc. and Microsoft Corp.

About a fifth of the S&P 500 companies have already released their third-quarter earnings reports, with more than half of them exceeding estimates. However, investors are concerned that the economic slowdown will be felt more seriously in the future. It is not for nothing that rumors have spread in the market that several representatives of the Fed have already seriously started talking about the underestimated damage to the economy that the current super-aggressive policy of the central bank can cause. Let me remind you that the committee plans to raise interest rates further, even though the economy is showing signs of weakening.

The Stoxx Europe 600 index declined after the morning growth. The chemical sector showed the worst results. The banking sector is also trading in the red after rumors that the European Central Bank is considering imposing restrictive measures on the growth of profits from the increase in interest rates in the banking sector. Shares of HSBC Holdings Plc fell by more than 7%.

Yesterday's reports on activity in the manufacturing and service sectors also did not impress. The reduction in indicators indicates that the Federal Reserve's rate hike is slowing down activity. Against this background, more and more investors expect that the central bank is nearing the end of its aggressive campaign of tightening borrowing costs. If inflation decreases in the near future and consumers rethink their approach to spending, it will be possible to see a completely different economic picture. It will increase stock indices, allowing the Fed to suspend the tightening cycle after the February meeting.

Oil fell as traders assessed a short-term supply shortage in the market and a broad appetite for risky assets, including commodity markets. Bitcoin continued to move in the side channel, holding above $19,000.

This image is no longer relevant

As for the technical picture of the S&P500, after a small phase of decline at the opening, the bulls have pulled themselves together and are trying to return to weekly highs. The main task for buyers now is to protect the supports: $3,773 and $3,735. As long as trading is conducted above these levels, we can expect the demand for risky assets to remain. This will also create good prerequisites for further strengthening the trading instrument and a breakout of $3,808. Only such a scenario will strengthen the hope for an upward correction with an exit to the resistance of $3,835. The farthest target will be the $3,872 area. In the case of a downward movement, buyers are obliged to declare themselves in the area of $3,773 and $3,735. A breakdown of these ranges will quickly push the trading instrument to $3,699 and $3,661 and open up the possibility of updating support and $3,621.

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

Stock Market on May 29th: S&P 500 and Nasdaq Pause Their Rally

At the close of the most recent regular trading session, U.S. stock indices posted modest losses. The S&P 500 declined by 0.56%, the Nasdaq 100 fell by 0.71%

Jakub Novak 11:04 2025-05-29 UTC+2

Navigating dollar surge and tech turmoil: key entry points for traders

Volatility has returned to financial markets. The dollar staged a sharp rally, driving down the yen, euro, and Swiss franc, but beneath the surface lies a web of unsettling signals

Аlena Ivannitskaya 11:44 2025-05-28 UTC+2

Update on US stock market on May 28

S&P500 US stock market is showing buoyant growth Snapshot of major US stock indices on Tuesday: Dow Jones: +1.8% NASDAQ: +2.5% S&P 500: +2.1% S&P 500 at 5,921

Jozef Kovach 10:38 2025-05-28 UTC+2

Stock Market on May 28th: S&P 500 and NASDAQ Continue Their Rapid Rally

Following the most recent regular session, U.S. stock indices closed with strong gains. The S&P 500 rose by 2.00%, while the Nasdaq 100 added 2.47%. The Dow Jones Industrial Average

Jakub Novak 09:43 2025-05-28 UTC+2

S&P 500 Forecast for May 28, 2025

The U.S. stock index, the S&P 500, has completed the correction that began on May 20. A sign of its completion is the price breakout above the inner boundary

Laurie Bailey 05:08 2025-05-28 UTC+2

Domestic Demand and Attractive Prices

The wave structure on the 24-hour chart for the #SPX instrument is generally easy to interpret. The global five-wave pattern doesn't even fit within the terminal window at the smallest

Chin Zhao 11:56 2025-05-27 UTC+2

Stock Market Update for May 27th: S&P 500 and NASDAQ Still Have Growth Potential

Following the most recent regular session, U.S. stock indices closed lower. The S&P 500 fell by 0.67%, while the Nasdaq 100 lost 1.00%. The industrial Dow Jones dropped by 0.61%

Jakub Novak 11:08 2025-05-27 UTC+2

Update on US stock market on May 27. Market picking up steam

S&P500 Snapshot of key US stock indices on Monday: Dow: -0%, NASDAQ: -0%, S&P 500: -0%, S&P 500 at 5802, with a trading range of 5400–6200. On Monday, US index

Jozef Kovach 10:40 2025-05-27 UTC+2

Trump changes his rhetoric, USD loses ground

The world is changing faster than the markets can blink. The dollar is rapidly losing ground amid a pause in the US-EU trade war. Nvidia is being forced

Аlena Ivannitskaya 13:05 2025-05-26 UTC+2

Stock Market Outlook for May 26th: S&P 500 and NASDAQ Return to Growth

During the previous regular session, U.S. stock indices closed lower. The S&P 500 fell by 0.67%, the Nasdaq 100 lost 1.00%, and the Dow Jones Industrial Average declined by 0.61%.However

Jakub Novak 11:50 2025-05-26 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.