US OPEN: Wall Street deepens post-FOMC sell-off

2:36 PM 21 September 2023
  • Wall Street indices opened lower
  • Dow Jones drops below short-term trendline
  • Google consider dropping Broadcom as AI chip supplier

Wall Street indices launched today's trading lower, adding to yesterday's declines. Unexpected hawkishness of Fed's forecasts is driving risk-aversion in the markets. Nasdaq and Russell 2000 traded around 0.9% lower at session launch, S&P 500 dropped 0.7% and Dow Jones moved 0.5% lower. 

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

Source: xStation5

Dow Jones futures (US30) are pulling back today, along with other major US indices. Taking a look at the US30 chart at D1 interval, we can see that the index is making a break below the short-term upward trendline today. This comes a few days after the index failed to break above the resistance zone marked with 78.6% retracement of the downward move launched at the beginning of 2022. Today's declines on stock market indices are driven by yesterday's FOMC meeting and, more precisely, by hawkish economic projections. Should bears remain in control and the index continues to move lower, the 34,150 pts swing level could be the first target. However, the more important support can be found 1% lower, at 61.8% retracement.

Company News

Broadcom (AVGO.US) launched today's trading lower following a report from The Information. Report said that executives at Alphabet's Google are considering dropping Broadcom as a supplier of AI chips. Chips from Broadcom could be dropped by Google as early as in 2027. Report also hinted that Marvell Technologies (MRVL.US) could be a replacement for Broadcom's products. Marvell gains at the start of today's trading.

FactSet Research Systems (FDS.US) launched today's trading slightly lower after reporting for fiscal-Q4 2023 (calendar June - August 2023). Company reported a 7.3% YoY jump in revenue, to $535.8 million (exp. 535 million), and a drop in adjusted EPS from $3.13 to $2.93 (exp. $3.51). Client count increased 5.1% YoY to 7 921 (exp. 7 895) while user count increased 5.6%  YoY to 189 972 (exp. 191 624). Company expects adjusted EPS in full fiscal-2024 to reach $15.65-16.15 (exp. $16.66) and revenue to reach $2.21-2.23 billion (exp. $2.23 billion).

Warner Bros (WBD.US), Paramount (PARA.US) as well as other US entertainment companies are trading slightly higher today. This comes in response to media reports saying that movie studies are inching closer to an agreement with writers to end a months-long strike.

Broadcom (AVGO.US) launched today's trading lower. Stock launched today's session below 815.00 support zone and below the 800 mark for the first time since early-June 2023. Key question now is whether bulls manage to push the stock back above the aforementioned 815.00 zone which acts as the lower limit of the trading range. If they fail, stock may continue to drop and the textbook range of the downside breakout can be found at 695.00. Source: xStation5

Share:
Back
Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023
YSC
VISITOR_INFO1_LIVE cc 28 August 2024

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language