FX.co ★ A risky situation is unfolding on Wall Street

Several experts agree that the observed record price dynamics of the market will repeat at the end of 1999, which may lead to a correction of 10% to 20% over the next month. We are talking about a review by the Federal Reserve of its strategy and bond purchase program, which may be announced during the September meeting, leading to very serious consequences. However, while the committee is silent about this, we can expect the market recovery to continue. Already today, the S&P 500 index has reached new record highs (we are talking about futures).

The statements of leading analytical agencies say that the record price momentum is so strong that it overshadows the serious short-term risks associated with an increase in the number of cases of infection with a new strain of Delta coronavirus. If the Fed continues to adhere to a super-soft monetary policy, the US market will update the highs. The nearest forecasts for the S&P 500 index are at the level of 5,000 points, which is more than 10% of the current value of the indicator. But the higher the index is by the time the central bank begins to curtail stimulus measures, the steeper and faster the market will fall at the same time. The psychological level of 5,000 points attracts many investors, among whom there are quite unskilled ones who risk losing everything in the event of a collapse.

As for today's premarket, Zoom Video shares fell immediately by 11.3% after the company reported a quarterly profit of $ 1.36 per share, which is 20 cents per share higher than estimates. Revenue also exceeded forecasts and exceeded $ 1 billion for the first time. However, the growth rate slowed down compared to the rapid levels observed at the time of the pandemic outbreak in 2020, which led to a decline in stocks.

The much-loved Robinhood fell another 2.8% in the premarket after falling 6.9% on Monday. The operator faced pressure on its shares after news emerged that PayPal is exploring its platform for trading shares. The comments of SEC Chairman Gary Gensler were also not ignored, who did not rule out a complete ban on brokers selling the flow of orders to market makers. This type of activity brings most brokers no more than 10% of their total income.

Uber Technologies and the Russian technology company Yandex (YNDX) have announced a deal to buy out Uber's stake in several joint ventures for food delivery and taxi for $ 1 billion. Uber was almost unchanged on the premarket, but Yandex added 1.2%.

Square plans to offer a new paid version of its billing software called Invoices Plus. The new service will provide some advanced features that have been tested over the past year in limited trials. The company's shares did not react to the news.

The news that according to the results of research, the Moderna vaccine from COVID-19 produced more than twice as many antibodies as the Pfizer - BioNTech vaccine led to a 1.4% increase in shares. A study in the Journal of the American Medical Association provides all the evidence.

From a technical point of view, the S&P 500 index can demonstrate a deeper downward correction to the area of 4,513 points and even return to the support of 4,480. If today passes in a fairly calm mode, we can expect the market to close above 4,500 points, which will open up a good potential for recovery at 4,600 and 4,750.