empty
17.05.2022 01:33 PM
American Premarket on May 17: the American stock market comes to life

US stock index futures rose sharply in trading on Tuesday as the market attempted to recover from the severe losses seen in the past few weeks. Futures contracts linked to the Dow Jones Industrial Average jumped 400 points or 1.2%. S&P 500 futures gained 1.6% and Nasdaq 100 futures gained 1.9%.

This image is no longer relevant

In general, if you look at it this way, risky assets are gradually beginning to be in demand. Today's growth comes straight from the overnight Asian session, where traders reacted positively to the news about COVID from China. For the third day in a row, no cases of infection with the virus have been reported in Shanghai, the key economic center of the country, where strict quarantine was imposed due to COVID. The stabilization of the US market in the last two sessions also returns investors' appetite for risks, as much cheaper stocks - especially technology companies - are already haunting many. It is noteworthy that since the beginning of the year, the S&P 500 and the Dow have fallen by 15.9% and 11.3%, respectively - which is not a reason for medium and long-term investors to enter the market.

Today, all traders' attention will be on the data on retail sales in the United States, which will be published before the opening of the regular session. These figures will give an idea of how well the consumer is coping with rising inflation in the US, which prompted the Federal Reserve to start a cycle of raising interest rates. It is precisely such actions of the Fed, together with inflation concerns, that have become a deterrent for the stock market. However, some investors still fear that the US economy may eventually plunge into recession. Many indicators now indicate the risk of a contraction or recession of economic growth. Now economists are expected to work out a basic scenario in which a recession will occur at the end of this year and the beginning of next.

This image is no longer relevant

Fed Chairman Jerome Powell is also expected to speak today.

Premarket

Home Depot shares rose more than 3% in premarket trading after the home improvement retailer posted better-than-expected quarterly results. The company also raised its annual forecast.

Citigroup securities rose 5% in the premarket after it became known on Monday evening that Warren Buffett's Berkshire Hathaway invested almost $3 billion in the struggling bank in the first quarter of this year. It is worth saying that Citi shares have lagged behind the rest of the financial sector over the past 12 months, falling by almost 40%, while the SPDR ETF for the financial sector has fallen by only 12% over the same period.

This image is no longer relevant

As for the technical picture of the S&P 500

The good start to the week continues. Buyers have already taken the $ 4,069 level, and until the moment when trading is conducted above this range, bulls can count on the continuation of the upward correction. The protection of $ 4,069 during a regular session after the release of US data will be an excellent starting point for building up long positions in a trading instrument, which will strengthen the confidence of traders counting on an upward correction. Fixing above $ 4,116 is the nearest resistance level, which will open the possibility of a return to $ 4,157. In case of pessimism and more talk about high inflation and the need to fight it, as well as very weak statistics on the US, we will see a major sell-off below $ 4,069. Reducing the trading instrument under this level will quickly push it to a minimum of $ 4,037. Having missed this range, it is best to postpone the purchase of a trading instrument to a minimum of $ 4,005.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Pavel Vlasov
Start trade
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 July 18. Investors overwhelmed by optimism. SP500 above 6,300

S&P500 Snapshot of major US stock indexes on Thursday Dow +0.5%, NASDAQ +0.7%, S&P 500 +0.5%, S&P 500 closed at 6,297, trading in a range of 5,900 to 6,400

Jozef Kovach 12:48 2025-07-18 UTC+2

Stock market on July 18: SP500 and NASDAQ continue their rally

As of yesterday, US stock indices closed higher. The S&P 500 rose by 0.54%, while the Nasdaq 100 added 0.75%. The industrial Dow Jones strengthened by 0.52%. Today

Jakub Novak 12:02 2025-07-18 UTC+2

Update on US stock market on July 17: key stock indices consolidating below their highs

S&P500 Snapshot of major US stock indices on Wednesday Dow +0.5%, NASDAQ +0.3%, S&P 500 +0.3%, S&P 500 closed at 6263, trading in a range of 5,900 to 6400

Jozef Kovach 13:03 2025-07-17 UTC+2

Stock market on July 17: SP500 and NASDAQ lifted by Powell speculation

As of yesterday, US stock indices closed higher. The S&P 500 rose by 0.32%, while the Nasdaq 100 added 0.25%. The industrial Dow Jones strengthened by 0.53%. The dollar also

Jakub Novak 12:28 2025-07-17 UTC+2

Update on US stock market on July 16: decline following key reports

S&P500 Snapshot of US major stock indices on Tuesday Dow -1%, NASDAQ +0.2%, S&P 500 -0.4%, S&P 500 closed at 6,243, trading in a range of 5,900 to 6,400

Jozef Kovach 13:11 2025-07-16 UTC+2

Stock market on July 16: SP500 and NASDAQ fell sharply amid new Trump tariffs

As of yesterday, US stock indices closed mixed. The S&P 500 fell by 0.40%, while the Nasdaq 100 gained 0.19%. The industrial Dow Jones dropped sharply by 0.98%. During this

Jakub Novak 10:10 2025-07-16 UTC+2

Update on US stock market on July 15: stock indices got stuck below all-time highs

S&P500 Major stock indices standing tall near all-time highs Snapshot of the key US stock indices on Monday: Dow +0.2%, NASDAQ +0.3%, S&P 500 +0.1%, S&P 500 closed at 6,268

Jozef Kovach 10:38 2025-07-15 UTC+2

Stock market on July 15: SP500 and NASDAQ returned to growth thanks to NVIDIA

As of yesterday, US stock indices closed higher. The S&P 500 rose by 0.14%, while the Nasdaq 100 added 0.27%. The industrial Dow Jones strengthened by 0.20%. Today, futures

Jakub Novak 10:03 2025-07-15 UTC+2

Stock Market Buying and Selling – July 15, 2025

Buying shares of Gilead Sciences (#GILD) Gilead Sciences is an American pharmaceutical company. Yesterday, the company's stock price made a decisive reversal from the MACD line support on the daily

Laurie Bailey 05:12 2025-07-15 UTC+2

Trump's new tariffs, BTC rally, and major AI deals: signals traders cannot afford to ignore

Global markets are once again under pressure. President Donald Trump has announced 30% tariffs on imports from the EU and Mexico, triggering a sharp reversal in US stock index futures

Аlena Ivannitskaya 15:31 2025-07-14 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.