FX.co ★ American Premarket for March 28: disturbing news for the American economy

Futures on US stock indices are trading quite differently on Monday before a very important week, which is filled with key macroeconomic indicators. Many traders continue to actively monitor the position of the Federal Reserve System and the pace of interest rate increases, which can seriously affect the further upward prospects of the market. Dow Jones Industrial Average futures fell 3 points, while S&P 500 futures rose 0.1%. Nasdaq 100 futures added 0.1%.

As for bond yields, there is a change in the yield curve, which indicates concerns about the recession of the economy. The yield on 5-year Treasury bonds rose to 2.6361%, while the yield on 30-year bonds fell by less than 1 basis point to 2,6004%. The fact that the yield of long securities is lower than the yield of short ones - the so-called inversion of the yield curve indicates real problems in the economy, which will only worsen as a result of inflationary pressure. However, the main difference in profitability, which traders are watching more closely - the spread between 2-year and 10-year securities - remains positive for now.

Following the results of last Friday, the Dow and S&P 500 indices rose, ending their second week in positive territory: The Dow gained 153 points, or 0.4%, the S&P 500 rose 0.5%, and the Nasdaq Composite fell 0.2%, but still ended the week in positive territory. Investors continue to monitor developments around Russia and Ukraine, as well as the progress of negotiations. According to recent statements made by the Russian side: negotiations between Russia and Ukraine in Istanbul will begin in the near future, but there will be no dialogue between Putin and Zelensky after the meeting of delegations in Istanbul. It is impossible to talk about progress in the negotiations so far, but it must be decided to continue them in person. The markets will react positively to this.

It is important that commodity markets have also paused their rapid upward movements - this indicates a stabilization of the situation among investors and a slight decrease in tension.

Premarket:

The main focus today is on the shares of Tesla, which has asked shareholders to allow the issue of additional shares at the upcoming annual meeting. This is necessary to pay dividends on shares. Against this background, Tesla jumped 5.4% in the premarket.

Beyond Meat securities fell 5.1% in the premarket after several analytical companies downgraded the rating to "below market" from "neutral". The statement pointed to the growing competition among producers of plant-based meat substitutes.

Apple's stock has fallen. As reported, the brand will reduce the planned release of the iPhone SE by 20% in the next quarter. This was done due to weaker than expected demand. Apple shares fell 1.2% in premarket trading.

British Barclays securities lost 3.1% in the premarket after the bank reported losses of almost $ 592 million as a result of improper handling of bonds. It was also stated that the planned share buyback is being postponed for the time being.

As for the technical picture of the S&P 500

Today's attempt to break $ 4,539 indicates a good start and the beginning of the week, but whether buyers will be able to keep the trading instrument above this level is a big question. Bears will also focus on this area today, as closing the market below this range will cool the ardor of buyers. Bulls, of course, will certainly try to continue the uptrend, which will be valid only after traders achieve an update of $ 4,588. Going beyond this level will open a direct path for the trading instrument to the highs: $ 4,665 and $ 4,722. In the event of a return of pressure on the index and a breakthrough of $ 4,539, we can expect a decline to the area of $ 4,488, but the longer-term target of sellers of the trading instrument will be at least $ 4,433, after which the bulls will have to start all over again.