Pre Open US - US Indices 15 Aug 2023

Global sentiment turned negative as disappointing data emerged from China, accompanied by an unexpected interest rate reduction by the country's central bank. China's July industrial production rose by 3.7%, falling short of expectations, and retail sales also grew less than anticipated. The People's Bank of China cut rates by 15 basis points to 2.5%, but instead of alleviating investor worries, it raised concerns about a potential property crisis in China.

In the premarket, shares of major banks such as JPMorgan Chase, Citigroup, Wells Fargo, and Bank of America declined. This followed a warning from Fitch that it might downgrade several banks, including JPMorgan Chase. Moody's had also recently downgraded the ratings of ten U.S. institutions and placed others on watch for potential downgrades.

Despite a positive Wall Street session driven by Nvidia's rally, some experts, like Alicia Levine from BNY Mellon Wealth Management, are preparing for consolidation as yields remain high, although the market might still see more gains by year-end.

Upcoming earnings releases from major retailers, including Home Depot, Target, and Walmart, are expected to garner attention. Home Depot's strong earnings report led to a slight rise in its stock before the market opened.

Looking ahead, Wall Street is focused on July retail sales data, import and export price information, and August's NAHB housing market index to gain insights into the consumer's state and economic conditions.

Nasdaq continues the selloff and closes near 15,000. If this support level is broken, the subsequent target could be 14,000.