empty
08.08.2023 02:10 PM
US premarket on August 8: Banking sector under pressure

Futures on US stock indices opened with a decline and are trading in the negative territory ahead of the regular session. Meanwhile, bond yields have dropped worldwide due to news about Italian banks, and economic difficulties in China and the US, which heightened concerns about the financial system, its safety, and global economic stability.

The yield on 10-year Treasury bonds fell by 10 basis points, and rates in Germany decreased by 15 basis points. The US dollar index increased by 0.5%. S&P500 futures are trading in the red zone, down 0.4%, while NASDAQ lost about 0.5%.

This image is no longer relevant

Volatility surged in European markets, particularly affecting the banking sector following news of Italy introducing a new tax on excess profits. As a result, UniCredit SpA and Intesa Sanpaolo SpA stocks dropped by more than 7%. Meanwhile, Moody's downgraded credit ratings of 10 small and medium-sized US banks and warned about risks related to commercial real estate lending. The agency will also focus on signs of stress in the industry, as rising interest rates force banks to pay more for deposits and increase financing costs from alternative sources.

Investor sentiment worsened after China published data indicating an economic growth slowdown: exports fell to levels seen in early 2020, and imports were also affected. The Hang Seng China Enterprises index dropped by about 2%. This led to declining commodity prices, with oil and copper losing nearly 2%.

The MSCI Emerging Market stock index reached a four-week low and is poised to break its 50-day moving average. There is some positive news though. The reduced demand for commodities and goods due to the economic growth slowdown will likely lead to lower global commodity prices and slightly ease inflationary pressures. However, this might not be enough for central banks, which are more focused on combating high core inflation, excluding energy prices.

This image is no longer relevant

Regarding the S&P 500 index, the demand for the trading instrument remains relatively low. Bulls have a chance for a continued uptrend, but they need to settle the price above $4,515. From that level, a leap to $4,539 may occur. Bulls should maintain control above $4,557, strengthening the bullish market. In case of a downside movement amid reduced risk appetite, bulls should protect $4,488. A breakthrough will 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

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

Stock Market on April 2: S&P 500 and NASDAQ Hit New Yearly Lows

At the close of yesterday's regular session, U.S. stock indexes ended in positive territory. The S&P 500 rose by 0.67%, the Nasdaq 100 gained 0.87%, and the Dow Jones Industrial

Jakub Novak 09:13 2025-04-03 UTC+2

US markets show resilience despite tariff concerns and economic weakness

S&P 500 The US stock markets paused ahead of President Trump's anticipated tariff announcements. The major indices ended the session mixed: the Dow Jones closed flat, the Nasdaq gained 0.9%

Jozef Kovach 12:15 2025-04-02 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.