empty
06.07.2023 02:50 PM
US premarket on July 6, 2023: Strong US labor market leaves Fed no choice

US stock index futures declined alongside bonds, indicating that central banks will likely continue raising interest rates to curb inflation. Investors have received another confirmation of that with the release of latest US labor market data from ADP once again. S&P 500 futures dropped by more than 1.0%, while the NASDAQ lost over 1.2%. The In the EU, the Stoxx 600 index fell to a six-week low.

This image is no longer relevant

Data released by ADP research institute revealed that US companies created significantly more jobs in June than initially projected, highlighting the current strength of the labor market. Job growth amounted to 497,000, more than double the average estimate of economists. Following the ADP report, treasury bond yields surged across the curve. The two-year rate, which is sensitive to policy changes, rose above 5%, and the 10-year rate climbed to 4% for the first time since March.

In the UK, the yield on 10-year government bonds reached levels last seen in 2008. Traders are now anticipating the Bank of England to set its peak interest rate at 6.5% by March of next year.

As mentioned earlier, the continued aggressiveness of central banks has diminished hopes for a soft landing of the global economy, pushing traders away from risk assets. The minutes of the June FOMC meeting highlighted disagreements among policymakers regarding the decision to pause rate hikes, with all voting members planning to raise rates again this month.

The fact that the FOMC has now officially announced its intention to continue raising rates, accepting the possibility of a recession, has negatively impacted risk assets. It is possible that the Fed will have no choice but to resort to these measures to cool down the economy. This development spells trouble for risk assets and companies with valuations that far exceed their earnings. The technology companies listed on the NASDAQ, which have seen substantial gains this year, are particularly vulnerable.

Tomorrow, the highly-anticipated US non-farm payrolls report will be released, shedding light on the future direction of monetary policy. Preceding the non-farm payroll data, the JOLTS report on job vacancies is expected to reveal a decrease in available positions, while unemployment claims are expected to rise.

This image is no longer relevant

Elsewhere, China's central bank, the People's Bank of China, has expanded its support for the yuan by raising the daily rate. According to Goldman Sachs Group Inc., Chinese investors do not expect policymakers to announce aggressive stimulus measures or major economic reforms until the end of this month.

Regarding the technical outlook for the S&P 500, demand for the index has slightly decreased. However, bullish traders still have the opportunity to extend the uptrend. Bulls must make a strong push to reclaim the levels of $4,427 and $4,447. From this level, the index may possibly surge to $4,469. An equally important task for bulls will be to maintain control over $4,488, which will strengthen the bull market. However, if the index continues to decline amid waning risk appetite, buyers must establish their presence around $4,405. A breach of this level would likely push the trading instrument back to $4,382 and potentially open the way towards $4,357.

Seleccione el marco de tiempo
5
min
15
min
30
min
1
hora
4
horas
1
día
1
s.
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO

Recommended Stories

El mercado de valores el 14 de marzo: los índices SP500 y NASDAQ continúan cayendo

Los futuros del índice de acciones S&P 500 y NASDAQ continuaron su fuerte descenso y volvieron al desarrollo de un escenario bajista. Las acciones asiáticas, así como los futuros

Jakub Novak 10:16 2025-03-14 UTC+2

Mercado de EE.UU. NASDAQ y S&P 500 en territorio de corrección: 10% por debajo de sus máximos.

S&P500 Análisis del 14 de marzo Mercado de EE.UU.: Corrección profunda. Principales índices de EE.UU. el jueves : : Dow -1.3%, NASDAQ -2%, S&P 500 -1.4%, S&P500 5521, rango 5400

Jozef Kovach 10:15 2025-03-14 UTC+2

Google, la Reserva Federal, Salesforce y los mercados de divisas: eventos que no se pueden ignorar

Los mercados modernos no se detienen: las nuevas tecnologías, los datos macroeconómicos y las decisiones políticas pueden cambiar instantáneamente el equilibrio de poder en la economía global. En este artículo

Natalia Andreeva 11:14 2025-03-13 UTC+2

S&P 500 se acerca a un punto de reversión. ¿Riesgo o oportunidad?

El mercado de valores estadounidense sigue mostrando una alta volatilidad, pero los inversores comienzan a buscar puntos de entrada después de la reciente caída. El enfoque está en la dinámica

Anna Zotova 11:14 2025-03-13 UTC+2

El mercado bursátil el 13 de marzo: el crecimiento de los índices S&P 500 y NASDAQ no duró mucho

Los futuros de los índices S&P 500 y NASDAQ volvieron a caer después de la publicación de los datos de inflación en EE. UU. de ayer, que, sorprendentemente, indicaron

Jakub Novak 07:55 2025-03-13 UTC+2

El mercado de valores el 12 de marzo: los índices SP500 y NASDAQ alcanzaron un nuevo mínimo

Los futuros del índice S&P 500 subieron un 0,2% después de perder un 0,76% al cierre de la jornada anterior, mientras que los contratos de futuros del Nasdaq 100 aumentaron

Jakub Novak 08:18 2025-03-12 UTC+2

El mercado de valores el 11 de marzo: los índices SP500 y NASDAQ cayeron más del 5,0%

La venta masiva de acciones continuó ayer, pero ya se desaceleró hoy durante la sesión asiática, lo que llevó a una recuperación de los futuros de los índices bursátiles estadounidenses

Jakub Novak 08:13 2025-03-11 UTC+2

El mercado de valores el 7 de marzo: los índices SP500 y NASDAQ volvieron a caer

Ayer, los índices bursátiles estadounidenses reanudaron su caída, alcanzando nuevos mínimos semanales. El índice S&P500 perdió un 1,78%, mientras que el tecnológico NASDAQ cayó un 2,61%. Las acciones asiáticas también

Jakub Novak 07:58 2025-03-07 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el 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.