Pre Open US - US Indices 23 Aug 2023

The futures for the S&P 500 and Nasdaq 100 both increased by 0.6% and 0.8% respectively. Nvidia is set to announce its second-quarter earnings later today. According to Refinitiv's polled analysts, the company is expected to show significant year-over-year increases in both profit and revenue for the second quarter. Having risen over 200%, Nvidia is the top-performing stock in the S&P 500 for 2023, as investors show enthusiasm for its AI-related opportunities.

Investors will be examining the report for indications of whether the market can resume its upward trend for the year, or if the August downturn will persist. The S&P 500 has experienced a decline of over 4% this month. On Wednesday, shares saw an increase of over 1%.

S&P Global's flash U.S. Composite PMI index for August could offer further insights into the strength of business activity and the direction of interest rates, in anticipation of a much-anticipated speech by Fed Chair Jerome Powell on Friday.

Traders are currently predicting an 86.5% likelihood that the Fed will maintain unchanged rates in September, based on CME Group's FedWatch tool. However, their expectations for rate cuts from the central bank have been reduced.

Nasdaq is bouncing after coming close to the 14500 level. The short-term selloff is still persistent. The 100MA and the Fibonacci close to 14400 are making a solid confluence point and the price may face a solid support there.