Capitalize on turbulent markets
| All the analysts confirm that the US economy does not look healthy, and we hear the word “recession” repeatedly. All the major events and even rumors directly impact the US indices. |
| FBS – We want our traders to feel our support in turbulent markets, both with reliable analytics and improved trading conditions. To help you profit in this highly volatile market, we are improving trading conditions: you can now trade US30, US100, and US500 indices with 1:500 leverage (up from 1:200). |
 Important! |
| Leverage is the money you borrow from your broker to open larger positions. Higher leverage maximizes your trading potential and helps you increase profit. However, it also increases risks. Remember it and apply risk management tools carefully. |
| What’s going on? All eyes are on financial markets now as we see global indices plummeting.Last week’s FOMC meeting suggested we may expect interest rate cuts in September. There are even rumors of emergency rate cuts to help the economy cope. As a result, we have already seen significant market volatility and the rise of the US500.Friday’s NFP release came out worse than expected and highlighted the weakness of the US economy. It may also reinforce the Fed’s decision to cut the key rate in September. |
What should we expect? September effectSeptember is traditionally the most volatile period for the stock market and US500. It has been the worst month for the US30, US100, and US500 since 1950.  Presidential raceHistorically, US markets experience significant volatility during the presidential race. This year’s campaign will be exceptionally hectic, so immense volatility is possible.  Interest rate cutsAnalysts agree that the Fed has reached the rate ceiling, so they will now need to cut the rate. The question is when. How do interest rate cuts work?  Lower interest rates foster personal and corporate borrowing, so investors consider them catalysts for growth.Consumers will spend more as they feel they can finally afford more goods and services.Companies can finance acquisitions and expansions at a lower rate, which increases their potential earnings and pushes stock prices up. Historically, rate cuts sometimes led to negative outcomes, such as the 2007 cuts preceding the 2008 financial crisis and the 2019 cuts leading to the 2020 market crash. |
| How should you trade now? All of these factors may trigger strong movements in the US stock market. Utilizing this knowledge can improve your trading approach during this critical period. What matters is that you can capitalize both on growing AND falling markets; what matters is market volatility. At such periods of volatility it is vital to receive prompt updates when something important happens. Here are our sources you may use to receive updates from our analysts. |
