Pre Open US - US Indices 28 Aug 2023

S&P 500 futures and Nasdaq-100 futures were active. 3M shares surged over 5% after a Bloomberg News report revealed the company's readiness to settle lawsuits regarding defective earplugs. Stocks experienced gains in the last session following fresh statements from Federal Reserve Chair Jerome Powell. Speaking at the annual central bank conference in Jackson Hole, Wyoming, Powell acknowledged ongoing economic growth and robust consumer spending. However, he emphasized the central bank's cautious approach to further rate hikes. Traders on Monday morning were factoring in an approximate 20% likelihood of a rate increase during the upcoming September Fed meeting, according to CME Group's FedWatch tool. The final week of August began with major indices poised to close the month with losses. Since the beginning of the month, the Dow and S&P dropped by 3.4% and 4%, respectively, while the Nasdaq experienced a decline of around 5.3%.

The Nasdaq is exhibiting weakness at its current high levels. The value of 14650 serves as a neckline for a head and shoulders pattern that is forming, indicating an anticipated potential reversal. The median line of the actual bullish channel is working as a support level too.