empty
20.07.2023 01:40 PM
US premarket on July 20: First warning signs for investors

On Thursday, futures on US stock indices slumped as disappointing tech company earnings cast doubt on further growth in the tech sector in the second half of the year.

This image is no longer relevant

Nasdaq 100 futures dropped by 0.7% following the sell-off of Netflix Inc. stocks, prompted by no sales estimates and revenue forecast for the third quarter, which did not meet economists' expectations. The company stated that it is still too early to assess the impact of its strict password-sharing measures and advertising-based app revenues. Tesla Inc. shares also fell after second-quarter profits decreased, indicating a reduction in the electric vehicle manufacturer's margin.

After such news, traders clearly booked profits following the rapid rally that led Nasdaq's high-tech index to grow by 45% this year, outpacing S&P 500's 19% growth.

Experts note that the expected returns of several leading tech companies are exaggerated and may be a harbinger of a decline. The reasonable return of the S&P500 index becomes more proportional to NASDAQ due to several mega-cap tech company stocks that surged amid AI optimism and are now facing problems, which is a classic sign of a concluding bullish phase. Considering the expected recession in the US this year, regardless of what politicians say, the drop in stock indices from their peaks can be swift.

In Europe, shares of European tech companies, including ASML Holding NV, fell after Taiwan Semiconductor Manufacturing Co. lowered its profit forecast.

US Treasury bonds also fell, pausing the rally caused by rumors that a decrease in inflation would allow the Federal Reserve to halt the rate-tightening cycle.

The yuan rose by 0.7% against the US dollar, becoming the most profitable currency in Asia after the People's Bank of China intervened in its exchange rate. China's efforts to boost economic growth, from rate reductions to easing regulations on tech companies, have done little to support the growth of the world's second-largest economy.

This image is no longer relevant

In the oil market, after a significant drop yesterday, there is now a slight demand. Gold continues to gain, heading to $2,000.

As for the S&P 500 index, demand for the trading instrument remains. Bulls have a chance to continue the uptrend, but they need to settle above $4,582. From this level, there could be a surge to $4,609. An equally important task for bulls would be to control $4,637, which would strengthen the bull market. In case of a downward movement due to decreased risk appetite, bulls should protect $4,557. A breakthrough will quickly push the trading instrument back to $4,539 and $4,515.

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 review for April 22: S&P 500 and Nasdaq extend losses

The US stock market closed lower in the most recent regular session. The S&P 500 fell by 2.36%, while the Nasdaq 100 lost 2.45%. The Dow Jones Industrial Average dropped

Jakub Novak 11:26 2025-04-22 UTC+2

Stock Market Update for April 21st: S&P 500 and NASDAQ Resume Decline Amid New Rumors

At the close of the previous regular session, U.S. stock indices ended mixed. The S&P 500 gained 0.13%, while the Nasdaq 100 slipped 0.13%. The industrial Dow Jones dropped 1.33%

Jakub Novak 11:57 2025-04-21 UTC+2

US market: Trump blasts Fed Chair Powell, but stocks hold steady

S&P 500 Overview for April 18 US market: Trump blasts Fed Chair Powell, but stocks hold steady Major US indices on Thursday: Dow -1.3%, NASDAQ -0.1%, S&P 500 +0.1%, S&P

Jozef Kovach 10:34 2025-04-18 UTC+2

Stock Market Outlook for April 18: S&P 500 and NASDAQ Attempt to Stabilize

At the close of the previous regular trading session, U.S. stock indices ended mixed. The S&P 500 rose by 0.13%, while the Nasdaq 100 fell by 0.13%. The industrial

Jakub Novak 08:00 2025-04-18 UTC+2

US market: Powell expresses concerns about economy. Marker drops

S&P 500 Report for 17.04 US market: Powell warns of economic slowdown. stocks drop Major US indices on Wednesday: Dow -1.7%, NASDAQ -3.1%, S&P 500 -2.2%. The S&P 500 closed

Jozef Kovach 11:32 2025-04-17 UTC+2

US stock market update on April 17. SP500 and NASDAQ plummet after Powell's remarks

Following the previous regular session, US stock indices closed with a sharp decline. The S&P 500 fell by 2.24%, the Nasdaq 100 dropped by 3.07%, and the Dow Jones Industrial

Jakub Novak 11:31 2025-04-17 UTC+2

US stock market on April 16: S&P 500 and NASDAQ resume declines

Following the previous regular session, US stock indices closed slightly lower. The S&P 500 slipped by 0.17%, the Nasdaq 100 edged down 0.05%, and the Dow Jones Industrial Average dropped

Jakub Novak 12:22 2025-04-16 UTC+2

US market remains resilient despite tariff turbulence from Trump

S&P 500 Overview for April 16 The US market remains resilient despite tariff turbulence from Trump Major US indices on Tuesday: Dow -0.4%, NASDAQ 0%, S&P 500 -0.2%, S&P

Jozef Kovach 11:50 2025-04-16 UTC+2

S&P 500 and Nasdaq 100: direct signals from earnings and geopolitics

Tuesday's premarket opens with uncertainty, a state that often precedes a storm rather than calm on Wall Street. The S&P 500 futures are sliding toward 5,420 after a strong Monday

Anna Zotova 11:52 2025-04-15 UTC+2

US market at crossroads: up or down?

Overview for April 15 US market at crossroads: up or down? Major US indices on Monday: Dow +0.8%, NASDAQ +0.6%, S&P 500 +0.8%, S&P 500: 5,405, trading range: 5,100–5,800. Stocks

Jozef Kovach 11:52 2025-04-15 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.