{"id":665268,"date":"2025-08-22T15:30:09","date_gmt":"2025-08-22T13:30:09","guid":{"rendered":"https:\/\/ftmo.com\/?p=665268"},"modified":"2025-08-22T14:57:54","modified_gmt":"2025-08-22T12:57:54","slug":"trading-us-indices-during-news-events","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/trading-us-indices-during-news-events\/","title":{"rendered":"Trading US Indices During News Events"},"content":{"rendered":"

When Wall Street moves, the world follows. US indices such as the <\/span>S&P 500, Nasdaq 100<\/strong> and <\/span>US30<\/strong> are among the most actively traded markets, attracting traders across the globe. While they tend to reflect economic cycles and corporate earnings, the biggest moves often come during major <\/span>economic news releases<\/strong>.<\/strong> For traders, these events bring both opportunity and risk, which is why preparation and discipline are essential.<\/span><\/em><\/p>\n

Why News Events Matter for Indices<\/span><\/h2>\n

High-impact announcements like the US jobs report (NFP), inflation data (CPI) or Federal Reserve policy decisions often trigger sharp volatility. These releases can reshape expectations for interest rates and growth, forcing equity markets to reprice in seconds. With so much liquidity and participation, the reactions in US indices are usually swift and substantial.<\/span><\/p>\n

For example, a hotter-than-expected CPI print in June 2025 caused the S&P 500 to fall more than 2% within minutes. This illustrates how quickly sentiment shifts and why traders need a plan before the numbers hit the wires.<\/span><\/p>\n

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How to Prepare for News Events Trading<\/span><\/h2>\n

Successful news trading starts well before the release. Traders who prepare avoid chasing price and instead react with confidence. To stay ahead of the market, consider these steps:<\/span><\/p>\n

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  1. Check the economic calendar<\/strong>
    \n<\/b>Identify high-impact events such as NFP, CPI, GDP or FOMC meetings. Note the release times, compare consensus forecasts with previous results, and prepare accordingly. Our Trading Week Ahead highlights the most significant events each week to make this easier.<\/span><\/li>\n
  2. Outline different scenarios<\/strong>
    \nAsk yourself: What if the data is stronger than expected? What if it misses? What if it\u2019s in line? Having a plan for each outcome keeps you objective and reduces the risk of emotional trading.<\/span><\/li>\n
  3. Identify key technical levels<\/strong>
    \nMark important support and resistance zones in advance. These often act as magnets when volatility picks up and can serve as breakout or rejection levels.<\/span><\/li>\n
  4. Adjust position sizing in advance<\/strong>
    \nNews releases increase the chances of whipsaws and slippage. Reducing your position size lowers exposure and makes it easier to stick with your strategy.<\/span><\/li>\n
  5. Control your environment<\/strong>
    \nMinimise distractions and avoid over-trading. News releases require focus and fast decision-making, so preparation is as much psychological as it is technical.<\/span><\/li>\n<\/ol>\n

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    Inside Bar Strategy for News Trading<\/span><\/h2>\n

    Want to trade the news but not sure where to start? The<\/span> inside bar strategy<\/strong> could be the answer. An <\/span>inside bar forms when a candlestick is completely contained within the high and low of the previous candle<\/strong>.<\/strong> In news-driven markets, this often marks a pause after the initial spike as traders digest the release and liquidity briefly tightens.<\/span><\/p>\n