empty
05.05.2023 02:45 PM
US premarket on May 5: Stock market recovers after 4-day slide

Following turbulent days triggered by US bank collapses, US stock index futures are showing signs of recovery. Both the S&P 500 and Nasdaq 100 futures rose by 0.7%, while the US dollar index regained some of its losses from the previous day. Treasury bond yields have also increased.

Today, the spotlight will be on the US employment report and speculations surrounding the Federal Reserve potentially cutting interest rates in response to tighter credit conditions. Swap contracts currently suggest a 50% chance of a rate reduction as soon as July.

This image is no longer relevant

In the premarket, PacWest Bancorp's shares surged by 28%, and Western Alliance Bancorp rose by 20%. Earlier this week, both companies experienced declines, causing a notable drop in the S&P 500 due to increasing concerns about stress in the financial system. If US data remains robust, stock indices are likely to face pressure again.

The Department of Labor's monthly report will provide essential information to the Federal Reserve and Chairman Jerome Powell on the health of the labor market. Economists forecast that hiring slowed down in April, with only 185,000 jobs added. Concurrently, the unemployment rate is predicted to inch up from the historically low levels observed last month.

Despite the faint possibility of a pause in interest rate increases, many experts caution that it is not the right time to purchase stocks, as capital outflows continue due to concerns over rising inflation and a looming recession. Bank of America Corp. released a forecast reflecting this sentiment today. The bank's report, referencing EPFR Global data, states that ETF outflows hit $6.6 billion for the week ending May 3, the largest amount in over two months.

JPMorgan Chase & Co. strategists recommend that investors seeking protection from a potential downturn might turn to gold and tech stocks, presenting a positive outlook for NASDAQ. The ongoing US banking crisis has already spurred demand for gold, pushing its value to a new record high.

Meanwhile, oil prices jumped by nearly 3%, as traders speculated that the recent sell-off may have been excessive.

This image is no longer relevant

As for the S&P 500 index, demand is slowly recovering. Bulls need to hold steadfast at $4,065 and target a bounce back to $4,091, pushing the price to $4,116 and $4,184. In addition, bulls need to maintain control above $4,208, which would establish a new bull market. If the index declines due to risks from a banking crisis and robust macroeconomic data driving inflation upward, bulls will have to protect $4,064. Breaking below this level, the trading instrument may plummet to $4,038 and $4,010.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Pavel Vlasov
Start trade
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

Update on US stock market on July 22. SP500 and NASDAQ sharply down

US stock indices closed mixed yesterday. The S&P 500 rose by 0.14%, and the Nasdaq 100 gained 0.38%. However, the industrial Dow Jones dipped by 0.04%. Today, Asian stocks declined

Jakub Novak 09:54 2025-07-22 UTC+2

High-profile elections in Japan and three important signals for traders

Markets are once again in a state of turbulence. The Japanese yen is fluctuating wildly following the political collapse of Prime Minister Shigeru Ishiba's coalition, which has deepened uncertainty

Аlena Ivannitskaya 12:43 2025-07-21 UTC+2

US stocks end week higher

S&P 500 Overview for July 21 The US market ended the week with gains Major US indices on Friday: Dow -0.3%, NASDAQ +0%, S&P 500 +0%, S&P 500 at 6,297

Jozef Kovach 09:30 2025-07-21 UTC+2

Update on US stock market on July 18. Investors overwhelmed by optimism. SP500 above 6,300

S&P500 Snapshot of major US stock indexes on Thursday Dow +0.5%, NASDAQ +0.7%, S&P 500 +0.5%, S&P 500 closed at 6,297, trading in a range of 5,900 to 6,400

Jozef Kovach 12:48 2025-07-18 UTC+2

Stock market on July 18: SP500 and NASDAQ continue their rally

As of yesterday, US stock indices closed higher. The S&P 500 rose by 0.54%, while the Nasdaq 100 added 0.75%. The industrial Dow Jones strengthened by 0.52%. Today

Jakub Novak 12:02 2025-07-18 UTC+2

Update on US stock market on July 17: key stock indices consolidating below their highs

S&P500 Snapshot of major US stock indices on Wednesday Dow +0.5%, NASDAQ +0.3%, S&P 500 +0.3%, S&P 500 closed at 6263, trading in a range of 5,900 to 6400

Jozef Kovach 13:03 2025-07-17 UTC+2

Stock market on July 17: SP500 and NASDAQ lifted by Powell speculation

As of yesterday, US stock indices closed higher. The S&P 500 rose by 0.32%, while the Nasdaq 100 added 0.25%. The industrial Dow Jones strengthened by 0.53%. The dollar also

Jakub Novak 12:28 2025-07-17 UTC+2

Update on US stock market on July 16: decline following key reports

S&P500 Snapshot of US major stock indices on Tuesday Dow -1%, NASDAQ +0.2%, S&P 500 -0.4%, S&P 500 closed at 6,243, trading in a range of 5,900 to 6,400

Jozef Kovach 13:11 2025-07-16 UTC+2

Stock market on July 16: SP500 and NASDAQ fell sharply amid new Trump tariffs

As of yesterday, US stock indices closed mixed. The S&P 500 fell by 0.40%, while the Nasdaq 100 gained 0.19%. The industrial Dow Jones dropped sharply by 0.98%. During this

Jakub Novak 10:10 2025-07-16 UTC+2

Update on US stock market on July 15: stock indices got stuck below all-time highs

S&P500 Major stock indices standing tall near all-time highs Snapshot of the key US stock indices on Monday: Dow +0.2%, NASDAQ +0.3%, S&P 500 +0.1%, S&P 500 closed at 6,268

Jozef Kovach 10:38 2025-07-15 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.