- S&P 500 futures lick wounds after the drop overnight.
- Cautious market mood weighs on the US equity futures.
- All eyes remain on Trump’s China announcement.
The futures on the S&P 500 index are nursing losses above the 3000 level, as the bears take a breather following the slump overnight.
The US futures reversed this week’s recovery mode and fell sharply, tracking the declines in the US indices after US President Donald Trump announced Thursday about the Friday presser on his response to China’s forceful advancement in Hong Kong’s security and civic liberties.
The tensions between the US and China ratcheted up last week after China proposed the National Security Legislation on Hong Kong, which was approved by the country’s parliament on Thursday.
The world’s two biggest economies were already battling out over the mishandling of the coronavirus outbreak by Beijing. Therefore, the Hong Kong issue has dampened the investors’ sentiment further. Markets continue to remain worried as the escalation could re-ignite the trade war between both countries.
Heading into the Trump’s presser due at 1800 GMT later in the NA session, the risk remains to the downside for the S&P 500 futures. Meanwhile, the US dollar also remains weighed down by the month-end liquidation play, offering little help to the stock futures.
Ahead of the presser, traders could also take cues from the US macro data releases for near-term trading opportunities.
Technical levels
Resistances: 3065.50 (multi-week high), 3100 (round figure) and 3137 (March high).
Supports: 3000 (psychological level), 2965.50 (May 27 low), 2927.48 (20-DMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.