US equity indices took a beating yesterday, with all major Wall Street benchmarks closing over 1% lower. Positive surprise in ISM data can be named as a reason behind poor performance of US equities. Non-manufacturing ISM index unexpectedly jumped from 54.4 to 56.5 in November, while the market expected a drop to 53.1 pts. Solid showing of services sector survey data hints that the Fed still has reasons to continue to tighten policy. As a result, US yields jumped following the release and exerted pressure on equity markets. Small-cap Russell 2000 (US2000) was a top laggard with a drop of almost 2.8%.
Taking a look at the US2000 chart at D1 interval, we can see that the index has recently failed to break above the 1,900 pts swing level and turned lower. Index broke back below the 200-session moving average (purple line) yesterday and tested a support zone marked with 23.6% retracement of the downward move launched in November 2021. No break below this zone occurred yet but the index continues to trade nearby. Should we see a rebound from this area, the near-term resistance to watch is the aforementioned 1,900 pts marked with previous local highs.
Source: xStation5
3 markets to watch next week - (17.10.2025)
US100 tries to recover🗽Sell-off hits uranium stocks
DE40: European markets decline due to concerns about the U.S. banking sector
Cockroach fears cause stock market sell off, as we wait for clearer details
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
