FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
42,979,251Confirmed
1,155,308Deaths
31,698,869Recovered
Fetching Location Data…
Advertisement
Advertisement
Vladimir Zernov
U.S. Stock Market

Tech Stocks In Focus

S&P 500 futures are mixed in premarket trading after yesterday’s sell-off in leading tech stocks.

Facebook, Amazon, Apple, Google left their recent trading ranges and gained downside momentum. These stocks are gaining some ground during the current premarket trading session so S&P 500 should have a chance to rebound today.

Advertisement

The big tech was leading the S&P 500 on its way up, and the market needs support from these mega-cap stocks to continue its upside trend.

The recent U.S. employment and housing reports indicated that the economy may be slowing down after the initial fast rebound as Initial Jobless Claims remained at high levels at 860,000 while Housing Starts declined by 5.1% in August.

While traders are worried that the economy may be losing steam, it remains to be seen whether the market is ready for another leg down as the prospect of low interest rates for the next three years pushes investors to buy stocks.

Advertisement

A Real Threat Of A Second Wave Of Lockdowns In Europe

Today, Israel entered a three-week lockdown in order to deal with the recent surge of coronavirus. It may turn out that Israel is just the first developed country to impose a second lockdown.

According to British Health Secretary Matt Hancock, the number of hospitalizations in the UK is doubling every eight days. British newspaper London Evening Standard reported that London was at risk of another round of coronavirus-related restrictions as the upcoming numbers would show a major increase in new cases.

In Greece, Prime Minister Kyriakos Mitsotakis stated that he was ready to impose additional restrictions in Athens to deal with the virus. In France, Nice banned gatherings of more than 10 people to rein in the recent surge in the number of new virus cases.

While the second wave of lockdowns in Europe will likely hurt stocks, oil could be the main victim. With no prospect for a continued rebound in travelling demand, oil traders may want to sell the recent rally.

U.S. Is Set To Block WeChat and TikTok Downloads On Sunday

U.S. – China relations are coming back into spotlight as Reuters reports that U.S. will issue an order banning TikTok and WeChat downloads in the country on Sunday.

TikTok’s owner ByteDance was negotiating a deal with Oracle but it is not clear whether the two sides will be able to make a deal that would satisfy U.S. administration.

In recent weeks, the markets have mostly ignored the continued deterioration in U.S. – China relations. However, this situation may serve as an additional bearish catalyst for S&P 500 if leading tech stocks continue to lose ground.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US