MG Network

our website isOn Vacation

In the mean time you can connect with us with via:

Copyright © Money Grows Network | Theme By Gooyaabi Templates

Money Grows Network

Archive

Powered by Blogger.

Welcome To Money Grows Network

Verified By

2006 - 2019 © www.moneygrows.net

Investments in financial products are subject to market risk. Some financial products, such as currency exchange, are highly speculative and any investment should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only.

Popular

Pages

Expert In

Name*


Message*

US premarket on November 23: the US stock market sank amid a rally in the bond market

US index futures declined slightly in morning trading on Tuesday after a sell-off that was observed in the technology sector, triggered by rising bond yields - as a result of which the Nasdaq Composite index fell by more than 1%. Futures for the Dow Jones index fell by 33 points, and futures for the S&P 500 and Nasdaq 100 were trading below yesterday's closing level.

Bond yields are rising

Even yesterday, many indices fell amid the market reaction to the jump in bond yields. The yield on 10-year US Treasury bonds rose by 9 basis points on Monday and exceeded 1.62%. Initially, the news that Federal Reserve Chairman Jerome Powell was selected by President Joe Biden for a second four-year term as the main candidate led to growth. This has reinforced expectations that the central bank will continue to stick to its monetary policy plans as the economy continues to actively recover from the coronavirus pandemic and now has to contend with high inflation. However, by the end of the session, the markets changed course due to the rally in the bond market. At the end of the day, the Dow Jones index rose by 17 points after rising by more than 300 points during the day. The S&P 500 index fell 0.32% after reaching an intraday high. The Nasdaq Composite fell 1.26%, after updating the highs.

analytics619cda18e117b.jpg

After the decline in bullish sentiment, which was formed due to the news that the current chairman of the Federal Reserve System, Jerome Powell, will be reappointed by President Biden for a new term, traders seemed to remember that they are at the next historical highs and that now is the time to lock in profits.

Most likely, active trading will move into a quieter phase, as everyone will be waiting for the publication of the minutes of the Fed meeting from the October meeting. Volatility will also decrease due to the celebration of Thanksgiving in the United States. Today, investors will be watching several economic data on manufacturing activity in the United States and activity in the service sector. In particular, the Philadelphia Fed's manufacturing index will attract attention. This week, data on new applications for unemployment benefits are also expected, as well as an updated GDP report for the 3rd quarter of this year.

Meanwhile, it is worth remembering that the reporting season continues and before the market opens, American Eagle, Best Buy, and Abercrombie & Fitch will come out with reports. Dell Technologies, GAP, HP, and Nordstrom will report quarterly earnings after the bell.

The growth of the stock market is also restrained by news about the coronavirus abroad. German Chancellor Angela Merkel warned that the number of infections of the virus is observed in the country and if the situation worsens, the country will be quarantined again. Recently, the number of COVID cases has been growing all over the world, but there is no evidence yet that the next wave will stop the American economy, as it was before.

analytics619cda2215b45.jpg

As for the technical S&P500

As long as the bulls keep the support of $4,660 under control and as long as trading is conducted above this level, we can expect a return to the resistance area of $4,718. If the bears manage to push through this range, the pressure on the trading instrument will surely return, and we will see a decline to the next level of $3,609.

The material has been provided by InstaForex Company - www.instaforex.com