Forex Analysis & Reviews: 13.06.2022 - US premarket on June 13: US...

13.06.2022 02:34 PM

US premarket on June 13: US stocks see another shock wave

The US stock indices are hitting yearly lows and investors are seriously concerned about it. Recently, they have speculated about market bottoms and returning demand for risky assets.

US stock futures fell Monday morning, putting the S&P 500 back in bear market territory. Friday's inflation report is to blame, forcing the Federal Reserve to keep raising interest rates. S&P 500 futures declined by 2.4%. As of Friday's close, the index was 19% below its all-time high. After dropping by 20%, we can say that a bearish trend is beginning to form. Dow Jones Industrial Average futures plummeted by 600 points or 1.9%. Nasdaq 100 futures nosedived by 3%.

Notably, the yield on short-term 2-year Treasuries rose by 17 basis points to more than 3.22% on Monday, the highest level since 2007. This was because investors are expecting the Fed to act more aggressively to curb inflation. During the trading session, the two-year rate traded above its 10-year counterpart for the first time since April, a so-called yield curve inversion seen as an indicator of a recession in the economy.

The indices showed their biggest weekly decline since the end of January. The Dow and S&P 500 fell by 4.6% and 5.1% respectively, and the Nasdaq Composite lost 5.6%.

According to the US Labor Department report, the Consumer Price Index rose by 8.6% on a yearly basis, the fastest increase since December 1981. The increase exceeded economists' expectations. The so-called core consumer price index, which excludes food and energy prices, also came in above estimates at 6%.

The Fed is expected to announce at least a 0.5% rate hike on Wednesday. The regulator has already raised rates twice this year, including by 50 basis points in May. Some economists after Friday's Consumer Price Index report began saying the FOMC may raise rates by 0.75%.

Premarket:

The stock of Coinbase, a cryptocurrency exchange, fell by more than 14% amid a sharp collapse of Bitcoin and other cryptocurrency assets.

Amazon also plummeted in the premarket, as tech companies are the most susceptible to bearish sentiment during a period of high volatility.

Tesla also dropped by 4%.

The pharmaceutical sector showed more resilience. Pfizer declined by about 1%, holding up better than the market as a whole. The Food and Drug Administration published its briefing paper on the Pfizer Covid-19 vaccine for children. The agency said that the data from the clinical trial showed no new concerns about the safety of the vaccine.

Technical analysis of the S&P 500

Bulls are likely to make an attempt to close the gap formed during the premarket sell-off, but it is unlikely that the index will be able to recover more significantly in the near future. The target is located at the resistance of $3,826. However, the beginning of this week could make some changes. A breakthrough of $ 3,826 may push the trading instrument to the area of $ 3,866 where large sellers will come back to the market. At least, there will be those, who wish to lock in profits by closing their long positions. The next target is at the level of $ 3,900, but the asset is unlikely to reach it. In the case of the pessimism and another talk about the high inflation and the need to fight it against the background of the Federal Reserve representatives' statements about more aggressive steps, as well as the lack of activity from bulls at $ 3,770, we may see the next big sell-off near $ 3,755. A decline in the trading instrument below that level would quickly push it to new lows of $3,731 and $3,708.

你今天已经点赞上这篇文章了

*这里的市场分析是为了增加您对市场的了解，而不是给出交易的指示。

If you have any content questions, please contact editorial-board@instaforex.com

Stock Markets

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025

该作者的更多文章

电子邮件订阅

EURUSD

Euro vs US Dollar

选择时间框架

分钟

小时

天

周

开始交易

通过InstaForex赚取加密货币汇率变动的收益。

下载MetaTrader 4并开启您的第一笔交易。

推荐文章

4月11日美國股市：標普500指數與納斯達克重挫

4月11日美國股市更新：在大幅反彈後市場大幅回調，市場恢復理性。

川普推遲關稅後股市飆升

美國市場強勁反彈，但特朗普與中國的貿易戰仍未解決

4月10日美國股市最新消息。SP500和NASDAQ大幅上漲

美中激戰：市場重挫，高科技股受創，黃金保持強勢

美國市場嘗試在關鍵支撐位穩定下來

4月9日股市概況：S&P 500 和 NASDAQ 回落至年度低點

美國市場：揭露特朗普關稅背後的真正原因。第一部分

美國市場出現強勁反彈。第二部分

Top analytics