Forex

Nasdaq index dropping today: seventh day of declines

Published

7 months ago

September 7, 2022

The Nasdaq Composite index closed in the negative for the first time since 2016 for the seventh trading day in a row. Another bad news, for it was good US economic statistics.

Almost two weeks have passed since August 26, but the negative impulse given to tech stocks by the “hawkish” speech of Fed Chairman Jerome Powell still will not fade. The Nasdaq Composite lost another 0.74% yesterday, marking the rarest streak of seven consecutive days of decline.

Why is the Nasdaq dropping?

The head of the Fed was able to finally convince the public that monetary policy will quickly tighten in the fight against inflation. That took a toll on rate-sensitive tech stocks, with the Nasdaq index dropping 12.42% today from its August peak and 28.79% from its all-time high.

But other securities are also getting cheaper. The market fears that the Fed might be wrong to tighten policy and send the economy into a recession. Strong economic statistics, which seem to suggest that the chances of a “soft landing” are growing, are perceived by them as evidence that the regulator, encouraged by it, will get carried away.

The ISM Non-Manufacturing PMI rose to 56.9 in August, the second straight increase after three months of decline. Analysts had expected a drop to 55. That was good news for the economy and bad news for the market.

The yield on the benchmark 10-year U.S. Treasury soared to 3.365%, back to mid-June levels. In 2-years it jumped to 3.522%, again near last week’s peak when it rewrote its high from 2007. The futures market immediately overestimated the likelihood of a 75bp rate hike at the Fed’s next meeting. According to the CME FedWatch Tool, the odds of that rose to 74% from 57% in previous trading.

This contributed to the decline in stocks — and the Dow Jones Industrial Average closed 0.55% and the S&P 500 was down 0.41%. Their share of tech stocks is lower than the Nasdaq, and they didn’t repeat its streak: these indices have fallen only six days out of the last seven. But they also noticeably moved away from their August peak: the Dow fell 9.15% and the S&P 500 rose 9.64%.

Nonetheless, the broad market index has so far managed to close above strong support around 3,900 points, although it looked lower yesterday. That level has been watched by many since early September.

Earlier, we reported that the Euro exchange rate daily declines against the dollar on fears of a worsening energy crisis.

Forex

Wall Street futures rise after the U.S. Fed meeting

Published

5 days ago

March 24, 2023

the preservation of the Fed's discount rate

U.S. stock index futures are rising Thursday, trading data showed. Markets are assessing the outcome of the U.S. Federal Reserve (Fed) meeting.

The Dow Jones Industrial Average (DJIA) futures rose 0.22% to 32,329 points, the NASDAQ high-tech index rose 0.96% to 12,828.5 points and the S&P 500 broad market index rose 0.48% to 3,989.75 points.

The Fed on Wednesday expectedly raised its benchmark rate by 25 basis points to 4.75-5% per year. The regulator noted that it does not expect the rate reduction this year, but allows it next year. U.S. exchanges were down 1.6% in Wednesday trading.

According to the CME Group, 55.8% of analysts now expect the Fed’s discount rate to remain unchanged in May, while 44.2% expect it to rise another 25 basis points. Thus, markets concede that the Fed may interrupt the cycle of hikes that began last March.

At the same time, shares of cryptocurrency exchange Coinbase were down 10.6% in pre-bid trading. The exchange this week received notice from U.S. authorities of an impending charge of violating laws.

Later in the trading, statistics on initial jobless claims in the U.S. for the week through March 18 will be released. Analysts forecast that the figure would increase by 5 thousand to 197 thousand applications.

Earlier we reported that the US budget deficit was $262bn in February.

Forex

ITB (International Trading Brachium) Broker Announced Its YouTube channel

Published

2 weeks ago

March 11, 2023

(Mahe, Seychelles-March 08, 2023) – ITB BROKER, LLC, an international forex broker, has announced that with our community growing, we believe that this will be the most effective medium to communicate with and so, we’re proud to announce the launch of ITB YouTube channel .

When a picture speaks a thousand words, How about a video?

Throughout our community building initiative, we strongly believe in video as our means of communication. Video has played a pivotal role in describing our futuristic services to our audience and in communicating our disruptive vision to potential traders or investors.
Over the next few weeks, we will be launching interesting videos on upcoming ITB features, bonuses, partnership or IB announcements and financial market expert interviews.
YouTube is a great place to pick up forex trading tips and learn how to use them in the real world.

There are a number of YouTubers that make great educational videos, perfect for beginners or those considering taking up forex trading. ITB group with over 10 years of financial experience provides you with useful tips and hints of forex trading via its YouTube channel.

About ITB

ITB Broker or ITBFX is a leading provider of online foreign exchange (FX) trading, CFD trading, and related services.

Founded in 2017, the company’s mission is to provide enthusiastic traders with access to the world’s largest and most liquid market by offering innovative trading tools, applying excellent trading platform, meeting strict financial standards, and striving for the best online trading experience in the market.

In addition, ITB offers educational courses on FX trading and Cryptocurrencies on academy section of ITBFX website.

Forex

U.S. budget deficit totaled $262 billion in February

Published

3 weeks ago

March 11, 2023

According to a report from the U.S. Treasury Department, the U.S. budget deficit in February was $262,434 billion compared to a $38.8 billion deficit in January. The Dow 30 also had problems.

Analysts at DailyFX suggested that the nation’s budget deficit for February was expected to be $256 billion. A year earlier, in February, the U.S. posted a budget deficit of $216,590 billion.

According to the GAO report, U.S. government spending rose 3.5 percent year over year last month to $524.548 billion, while revenue, in contrast, declined 9.5 percent to $262,114 billion.

Earlier, the U.S. edition of the Washington Post published an editorial stating that the new draft budget proposed by the Biden administration undermines U.S. national security and its ability to invest in the future, because it suggests a further growth of the U.S. national debt.

The WP editorial board noted that the new draft budget assumes a $2 trillion budget deficit, including due to the high cost of providing health insurance to the elderly of the baby boomer generation.

Earlier we reported that the EU has agreed to reduce energy consumption by 11.7% by 2030.