US stock index futures were sharply lower overnight but turned higher as Wednesday’s European session progressed. Yesterday, all the US majors closed in negative territory. But, in a similar fashion to Monday’s trading, all closed significantly above the day’s lows. The Dow and S&P 500 ended off 0.8% and 0.9%, respectively, while the NASDAQ dropped 1.0%. The small cap Russell 2000 fared worse, closing down 1.8%.
Source: TN Trader
In one major respect, at least from a technical standpoint, yesterday’s session differed from Monday’s. On Monday, all the major US stock index futures sold off in early trade but had recovered before the US open. So, the morning lows weren’t repeated during the main session. This meant that the bulls remained the dominant force.
Yesterday, the early selloff across US stock index futures was maintained into the main session, and this saw the S&P break under this year’s low. This was an ominous sign, suggestive of further weakness to come. There were plenty of concerns over US equities before the US-Israeli attack on Iran, including worries over AI and private credit.
Yet once again, dip buyers emerged to save the day as they have this morning. Could this be enough to drive US equities back up to all-time highs? Stranger things have happened. But as things stand, the S&P hasn’t quite managed to push back above 6,850. A prolonged break above here could embolden the bulls.
