FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
Libertex information and reviews
FxPro information and reviews

Stock Market Futures Rise

30 September 2021

Futures in the United States and Europe are trading higher today, with the Dow and S&P 500 recouping some of Tuesday’s losses, while the Nasdaq fell. The stock market’s rebound was most likely driven by bargain hunters who saw the drop in stock prices as an opportunity. Consumer staples and utilities performed relatively better than other sectors. Today, investors will be watching the conversations of three FOMC members, Bostic, Evans, and Williams, to gain a better understanding of how the Federal Reserve sees the US economy growing.

These events may cause a shift in equity indices. In yesterday’s session, the Dow Jones Industrial Average jumped 0.26%, and the S&P 500 index hopped 0.16%. The Nasdaq, the tech-heavy index, dipped 0.24%, and the Russell 2000, the small-cap index, fell 0.20%.

Stock Market

Stock prices of technology companies slumped earlier this week after treasury yields jumped. Investors should understand that future cash flows are major drivers of the valuation of stock companies, and a rise in yields makes these cash flows less appealing. Hence, a decline in these valuations prompts a sell-off to adjust prices accordingly.

Another factor affecting market sentiment is the current feud between Democrats and Republicans. On Wednesday, the Biden administration rushed to solve a stalemate between the two parties. Conflict between the two parties comes because of differences in viewpoints regarding the scope and size of President Biden’s proposed $3.5 trillion tax and spending bill. The deadlock is hindering the President’s economic agenda while the U.S. treasury is working to dodge a default and meet its commitments.

Investors should note that although political uncertainty, both domestic and global, is likely to prevail in the coming months, a government shutdown is highly unlikely and the two parties are likely to come to an agreement. Broadly speaking, the overall outlook of equity markets remains positive based on a sound economic recovery and steady tightening of monetary policy. Having said that, market corrections are still likely to occur from time to time, but that would be because of normal adjustments to the ever-changing risk, cost of capital, and market uncertainty.

Economic Data

The pending home sales index in the United States rose to its highest level in seven months, as potential buyers embraced greater supply and more competitive pricing. The index, published by the National Association of Realtors, surged 8.1% in August, compared to the same in July, while economists expected a mere 1.4% rise. The data suggests that activity in the housing sector is showing strength after falling from peaks in 2020. However, investors should understand that affordability still remains an issue, because wage growth is one third of the growth in home prices.

Furthermore, initial unemployment claims data for last week is scheduled to be released today. Claims are projected to be 335,000. Similarly, forecasts for Q2 GDP are set to be issued today by the Bureau of Economic Analysis.

Energy Crisis

The approaching power crisis in China and Europe has weighed heavily on market sentiment. Power outages in these areas will almost certainly exacerbate global supply chains, contributing to rising consumer prices. China, the world’s second biggest economy, is experiencing widespread power outages, which are negatively affecting factory output.

Almost 20 provinces are experiencing difficulties in one way or another, and businesses in these areas have temporarily ceased operations or are working fewer hours. Beijing has asked local transportation companies to speed up the much-needed coal supply to utility providers.

Furthermore, the Chinese government has ordered power rationing during peak hours. If power is not rationed, the entire grid is at risk of collapsing. Similarly, three power companies in the United Kingdom were forced to close due to their inability to meet peak gas prices. As a result, 1.7 million customers have lost their service provider.


Following the release of crude oil stockpiles data yesterday, crude oil prices dropped because the data showed a rise in inventories by 4.6 million barrels in the week ending September 24th. Inventories rose as suppliers resumed activity to pre-pandemic levels after production was curbed in the Gulf of Mexico, after not one, but two hurricanes hit the region. According to the Energy Department, output in the United States surged to 11.1 million barrels per day, touching levels seen before the coronavirus pandemic hit the world. Brent, the worldwide benchmark of crude oil, dipped 0.6% and settled at $78.58 per barrel. Brent crude crossed $80 per barrel earlier this week, its highest price over the last three weeks.


Gold prices have fallen as the dollar rose to its highest level since November 2020. The dollar index, which compares the value of the US dollar to a basket of currencies, has been rising for the past four days, and it closed at 94.112 on Wednesday. On the other hand, investors should closely monitor the dispute over the US debt ceiling, as the yellow metal could see some retracement if the government is forced to shut down.




The Euro rebounded from the low
The Euro rebounded from the low

After updating its multi-year lows again, the major currency pair rebounded. The current quote for the instrument is 0.9656. Last night, the local interest in risks improved a bit, helping the asset to successfully correct...

29 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back...

28 Sep 2022

Forex and Cryptocurrencies Forecast for September 26-30, 2022
Forex and Cryptocurrencies Forecast for September 26-30, 2022

Last week, all the attention of the markets was focused on the FOMC meeting of the US Federal Reserve, which took place on September 21. The probability of another rate hike by 75 basis points (bp)...

26 Sep 2022

Trading the SPDR S&P 500 ETF Trust
Trading the SPDR S&P 500 ETF Trust

The Standard & Poor’s (S&P) 500 Index measures the market capitalisation of the top 500 US largest corporations. Many traders and investors use the S&P 500 Index as a benchmark...

23 Sep 2022

Gold pauses as traders await Fed decision
Gold pauses as traders await Fed decision

The anticlimactic performance of gold continues as the prospect of aggressive rate hikes by central banks around the world amid heightened inflationary pressures...

21 Sep 2022

Developing a forex trading plan: All you need to know
Developing a forex trading plan: All you need to know

All forex traders have different backgrounds, market views, risk appetite, thought processes and expectations. Therefore, traders should not just blindly follow what other traders do...

20 Sep 2022

Editors' Picks

HFM information and reviews
IronFX information and reviews
FXCM information and reviews
NordFX information and reviews
Vantage information and reviews
FP Markets information and reviews
FP Markets

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.