Pre Open US - US Indices 16 Aug 2023

S&P 500 and Nasdaq 100 futures saw slight gains. These movements occurred after a negative session on Wall Street, where all three main indices closed over 1% lower on Tuesday. This resulted in the Dow breaking a three-day winning streak.

Financial stocks, including JPMorgan Chase, Wells Fargo, and Bank of America, experienced declines after Fitch issued a warning about potential credit rating downgrades for numerous banks. This situation adds to the challenges the sector is facing, following Moody's decision last week to downgrade ratings for 10 banks and place other institutions on a watchlist.

Regional bank shares also faced difficulties due to remarks made by Minneapolis Federal Reserve President Neel Kashkari concerning potential capital regulation. The SPDR S&P Regional Banking ETF (KRE) concluded the session with a 3.3% decrease.

Furthermore, investor sentiment was affected by economic news from China. Retail sales and industrial production growth fell short of economists' expectations, as revealed by Tuesday's data. Additionally, the country's central bank implemented an interest rate cut.

As August is just past its midpoint, the three major indices are on track to experience a month of losses. The Nasdaq Composite and S&P 500 are projected to decline by 5% and 3.3% respectively, while the Dow is expected to drop by 1.7%.

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