empty
25.09.2023 03:27 PM
US premarket on September 25: US stock market continues its sharp decline

US stock index futures are falling further, trading around weekly lows. S&P 500 futures are down 0.3%, while the tech-heavy NASDAQ has dropped 0.5%. US government bonds also slipped, offsetting earlier gains. Traders anticipate central banks maintaining higher interest rates for longer to combat inflation. The US dollar index has hit its March highs.

This image is no longer relevant

Germany's 10-year bond yields have also surged, reaching a 2011 peak. The Stoxx 600 dropped by 0.6% due to issues in the mining sector. Rio Tinto Plc shares plummeted by 5.2% as China's real estate problems impacted the demand outlook for natural resources.

Notably, traders have grown increasingly concerned after the US Federal Reserve's recent decision to keep rates unchanged. Rising oil and other energy costs could reignite inflation, complicating efforts to reduce rates next year. Oil prices are climbing again as investors bet supply cuts will continue impacting demand.

Central banks will need to grapple with rising core inflation metrics in the fourth quarter, including energy costs. As a result, the rhetoric from the European Central Bank (ECB), Federal Reserve (Fed), and other country regulators will lean towards a prolonged tight policy stance.

Recently, several Fed officials hinted at another rate hike in the near future. Borrowing costs might remain high to help the Fed achieve its 2% inflation target. However, some argue further tightening would be a mistake, potentially pushing the country into a recession. Against this backdrop, the yield on 10-year Treasury bonds could quickly revert to 4.75% before softer risk sentiments and tighter financial conditions drive yields down. Currently, the yield is at 4.49%, slightly below last Friday's 16-year high of 4.5%.

This image is no longer relevant

Meanwhile, concerns over Chinese developers push investors away from risk assets. Today, China Evergrande Group canceled an investor meeting, amplifying fears about its debt situation.

As for the S&P 500, demand for the index remains weak. Bulls need to take control of $4,332 and $4,357 to cancel the bear market. From these levels, they can push the price to $4,382. Bulls also should take control of $4,405, restoring the market balance. If the index decreases amid a decline in risk appetite, bulls will have to protect $4,304. Breaking through this level, the trading instrument may return to $4,255 and $4,205.

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

Stock market review for April 22: S&P 500 and Nasdaq extend losses

The US stock market closed lower in the most recent regular session. The S&P 500 fell by 2.36%, while the Nasdaq 100 lost 2.45%. The Dow Jones Industrial Average dropped

Jakub Novak 11:26 2025-04-22 UTC+2

Stock Market Update for April 21st: S&P 500 and NASDAQ Resume Decline Amid New Rumors

At the close of the previous regular session, U.S. stock indices ended mixed. The S&P 500 gained 0.13%, while the Nasdaq 100 slipped 0.13%. The industrial Dow Jones dropped 1.33%

Jakub Novak 11:57 2025-04-21 UTC+2

US market: Trump blasts Fed Chair Powell, but stocks hold steady

S&P 500 Overview for April 18 US market: Trump blasts Fed Chair Powell, but stocks hold steady Major US indices on Thursday: Dow -1.3%, NASDAQ -0.1%, S&P 500 +0.1%, S&P

Jozef Kovach 10:34 2025-04-18 UTC+2

Stock Market Outlook for April 18: S&P 500 and NASDAQ Attempt to Stabilize

At the close of the previous regular trading session, U.S. stock indices ended mixed. The S&P 500 rose by 0.13%, while the Nasdaq 100 fell by 0.13%. The industrial

Jakub Novak 08:00 2025-04-18 UTC+2

US market: Powell expresses concerns about economy. Marker drops

S&P 500 Report for 17.04 US market: Powell warns of economic slowdown. stocks drop Major US indices on Wednesday: Dow -1.7%, NASDAQ -3.1%, S&P 500 -2.2%. The S&P 500 closed

Jozef Kovach 11:32 2025-04-17 UTC+2

US stock market update on April 17. SP500 and NASDAQ plummet after Powell's remarks

Following the previous regular session, US stock indices closed with a sharp decline. The S&P 500 fell by 2.24%, the Nasdaq 100 dropped by 3.07%, and the Dow Jones Industrial

Jakub Novak 11:31 2025-04-17 UTC+2

US stock market on April 16: S&P 500 and NASDAQ resume declines

Following the previous regular session, US stock indices closed slightly lower. The S&P 500 slipped by 0.17%, the Nasdaq 100 edged down 0.05%, and the Dow Jones Industrial Average dropped

Jakub Novak 12:22 2025-04-16 UTC+2

US market remains resilient despite tariff turbulence from Trump

S&P 500 Overview for April 16 The US market remains resilient despite tariff turbulence from Trump Major US indices on Tuesday: Dow -0.4%, NASDAQ 0%, S&P 500 -0.2%, S&P

Jozef Kovach 11:50 2025-04-16 UTC+2

S&P 500 and Nasdaq 100: direct signals from earnings and geopolitics

Tuesday's premarket opens with uncertainty, a state that often precedes a storm rather than calm on Wall Street. The S&P 500 futures are sliding toward 5,420 after a strong Monday

Anna Zotova 11:52 2025-04-15 UTC+2

US market at crossroads: up or down?

Overview for April 15 US market at crossroads: up or down? Major US indices on Monday: Dow +0.8%, NASDAQ +0.6%, S&P 500 +0.8%, S&P 500: 5,405, trading range: 5,100–5,800. Stocks

Jozef Kovach 11:52 2025-04-15 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.