empty
26.04.2022 02:44 PM
US premarket on April 26: US stock market rebounds but fails to reach yearly lows

US stock index futures slightly declined on Tuesday after showing an attempt to find a bottom on Monday and bouncing upward in hopes that April's sell-off is gradually coming to an end. Dow Jones Industrial Average futures dropped by about 140 points or 0.4%. S&P 500 futures plunged by about 0.4% and Nasdaq 100 futures decreased by 0.4%.

This image is no longer relevant

Yesterday, the Dow Jones index gained more than 200 points. The sharp market reversal sent the Nasdaq Composite and the S&P 500 up by 1.3% and 0.6% respectively. Indeed, the reversal is quite impressive, but it is unlikely to be the end of the market decline seen throughout April.

Falling US government debt yields led to a slight strengthening of the technology sector. In particular, companies such as Microsoft, Alphabet, and Meta Platforms increased. Twitter also jumped after its board accepted an offer from Tesla CEO Elon Musk. Musk is set to become Twitter's next owner, paying about $44 billion for it. Now users are wondering how he will fulfill his promise to develop new features by opening his algorithm to the public. Musk also recently made the announcement that he planned to make the most honest social network with free speech and investors fear these changes. Some experts who have spent years studying content moderation and researching Twitter have expressed doubt that Musk knows exactly what he is going to do.

The upward market correction also points to the acceptance of an interest rate hike by the Federal Reserve as early as May this year, as no one else will talk about it until the meeting. Usually, the committee maintains a silent mode before the meeting so investors can cool down their concerns. That's what will happen this time, too. The severely oversold market relative to this year's opening levels makes it attractive, counting on a smoother landing of the economy after more than two years of central bank stimulus.

As for economic data, investors are waiting for fresh data on new home sales and consumer confidence. A major divergence from the figures will lead to a spike in volatility. Good readings, on the other hand, are likely to strengthen markets.

This image is no longer relevant

Premarket

PepsiCo, the food and beverage giant, fell in premarket trading, though the company reported higher profits as consumers paid more for some of the company's key brands.

General Electric shares fell by 3.5% despite beating forecasts in its quarterly report. The company reiterated its previous full-year earnings forecast but said it saw challenges related to inflation and supply chain issues.

3M stock was flat at the premarket after reporting quarterly earnings that beat estimates. The company reported revenue of $8.83 billion, compared with analysts' expectations of $8.74 billion.

This image is no longer relevant

As for the technical picture of the S&P 500

Bulls managed to reach above $4,265 yesterday, but that's all for now. All they need now is to hold the price above this level. Only if the price fixes above this level, it may reverse the bearish sentiment, observed since early April. However, it's too early to talk about the bull market. A consolidation above $4,265 opens an opportunity for a return to $4,319 and a renewal of $4,376. In case of return of pessimism, which is obvious - nothing good happens apart from corporate reports, as well as in case of weak statistics on consumer confidence indicator in the United States, bulls will have to protect $4,265. If the trading instrument falls below this level, it will quickly reach the low of $4,216. If you miss this level, it is better to postpone opening longs until the index reaches the lows of $4,162 and $4,113.

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 on March 14th: S&P 500 and NASDAQ Indexes Continue to Decline

Futures on the S&P 500 and NASDAQ stock indices continued their significant decline, returning to a bearish scenario.Asian stocks, along with futures on U.S. and European stock indices, rose during

Jakub Novak 13:01 2025-03-14 UTC+2

Donald Trump Is Just Getting Started

The 24-hour chart wave structure for #SPX appears relatively clear. The first key observation is the global five-wave structure, which is so extensive that it doesn't even fit into

Chin Zhao 12:04 2025-03-14 UTC+2

US stock market: NASDAQ and SP500 going through correction, 10% down from their historic highs

S&P500 Markt update on March 14 Snapshot of benchmark US stock indices on Thursday: Dow -1.3%, NASDAQ -2%, S&P 500 -1.4%, S&P 500 at 5,521, range 5,400 - 6,000

Jozef Kovach 10:53 2025-03-14 UTC+2

S&P 500 Forecast for March 14, 2025

Yesterday, the S&P 500 index reached its target support level of 5516, which corresponds to the peak observed on June 20, 2024. This level also aligns with the 23.6% Fibonacci

Laurie Bailey 03:53 2025-03-14 UTC+2

US stock market groping for support

S&P500 Market update on 13.03 Snapshot of benchmark US stock indices on Wednesday: Dow -0.2%, NASDAQ +1.2%, S&P 500 +0.5%, S&P 500 at 5,599, range 5,400 – 6,000 The S&P

Jozef Kovach 10:17 2025-03-13 UTC+2

Stock Market on March 13: SP500 and NASDAQ Gains Were Short-Lived

Futures for the S&P 500 and NASDAQ indices declined again following yesterday's unexpected U.S. inflation data, which revealed a slowdown in price pressures that contradicted economists' forecasts. Asian stocks also

Jakub Novak 08:28 2025-03-13 UTC+2

US market experiencing strong correction

S&P 500 Overview for March 12 The US market is experiencing a strong correction. US major indices on Tuesday: the Dow -1.1%, the NASDAQ -0.2%, the S&P 500 -0.8%

Jozef Kovach 11:36 2025-03-12 UTC+2

Stock Market on March 12th: S&P 500 and NASDAQ Hit Another Low

Futures on the S&P 500 index rose by 0.2% after losing 0.76% at the end of the previous day, while Nasdaq 100 futures added 0.3% after closing at -0.18%. Stocks

Jakub Novak 10:58 2025-03-12 UTC+2

Trump's meeting with Wall Street leaders set to stabilize market

Amid a sharp decline in US stock markets, President Donald Trump will meet with chief executives of major companies today as industry leaders try to navigate the uncertainty surrounding widespread

Jakub Novak 13:32 2025-03-11 UTC+2

Black Monday on Wall Street. US stocks lose $4 trillion in market capitalization

S&P500 Market review on March 11 US stock market suffers a crash. $4 trillion lost, but game not over yet Performance of benchmark stock indices on Monday: Dow: -2.1% NASDAQ

Jozef Kovach 12:14 2025-03-11 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.