Pre Open US - US Indices 24 July 2023

Investors are expecting a quarter percentage point increase in rates from the Federal Reserve after its meeting on Wednesday. Their focus will be on Chair Jerome Powell's comments, seeking insights into the central bank's approach to handling the economy for a smooth landing. A majority of economists polled by Reuters still expect this will be the last increase of the current tightening cycle, after data this month showed signs of disinflation, eliminating the need for the Fed to lift rates further and supporting the thesis that has helped buoy stocks in recent weeks.

In the upcoming week, there will be a surge in earnings results, particularly on Thursday, which will be the busiest day. Approximately 40% of the Dow and 30% of the S&P 500 companies will be presenting their financial updates. Notable companies like Alphabet, Microsoft, and Meta are among those reporting. Additionally, significant pharmaceutical, industrial, and big oil companies are also preparing to release their reports, making it a crucial week for these sectors.

Before trading begins on Monday, exchange operator Nasdaq NDAQ will trim the weight of a handful of companies that make up close to half of the Nasdaq 100.  Nasdaq describes the Nasdaq 100 as a "modified market capitalization-weighted index," with company weights depending on their stock market value, while also applying rules to limit the influence of the largest stocks in the index.

The Nasdaq is currently undergoing a correction, heading towards the next support level of around 15,250. If it breaks below 15,250, it may further decline toward the median line at approximately 14,750.