Heightened geopolitical uncertainty continues to wreak havoc on global financial markets. The US stock market piled up losses again on Friday, February 18. Investors are spooked, since on the one hand, the market for risk-sensitive assets remains under pressure from the upcoming reversal of monetary policy by leading central banks, while, on the other hand, geopolitical tensions have reached a boiling point.
If the situation in Europe slips out of control, energy supplies could be disrupted. Under such a scenario, in the medium and long term, the outlook for the stock markets is not encouraging. US stock indices have shed 9-13% YTD.
NASDAQ Composite: 13,548 (-1.23%)
S&P 500: 4,348 (-0.72%)
DJIA: 34,079 (-0.68%)
SPX 500 CFDs are attempting to rebound in premarket trading. The index is hovering near the 4,350 support level, at which bearish sentiment could prevail. In light of fundamentals, the most likely scenario is a pullback to 4,300 (see below the CFD chart on the SPX 500 from MT4).
Recapping the key data, US housing market data published on Friday, overshot the consensus forecast. Existing home sales rose 6.7% in January to 6.5 mln, according to the National Association of Realtors.
Intel Corp. plunged 5.3%. After the market closed on Thursday, the company released guidance for 2022 that exceeded the median forecast. The management forecast $3.50-a-share earnings on revenue of $76 bln.
Roku Inc shares plunged 22%. The streaming equipment company’s net profit tanked 65% in Q4 2021.
JPMorgan Chase & Co. added 0.5%. CFO Jeremy Barnum voiced confidence that the bank could achieve its target of 17% return on average tangible common shareholders’ equity.