Pre Open US - US Indices 26 July 2023

In premarket trading on Wednesday, US technology shares experienced a decline due to disappointing earnings in the sector and concerns about potential interest rate increases from the Federal Reserve.

According to market sentiment, the Federal Reserve is expected to raise rates by 25 basis points later today. Additionally, Fed funds futures suggest a 44% chance of another quarter-point hike after this, while any possibility of a rate cut has been deferred until March.

Before the Fed's decision, the FOMC will receive data on June new home sales, with economists predicting a drop in the annual rate to 725K.

Earnings reports are still coming in, with Microsoft witnessing a decline after posting their earnings, whereas Alphabet's stock rose. Later today, Meta will also release their earnings report after the bell.

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.