S&P 500 closes higher after Fed officials comment

• The S&P 500 ends the day up 0.30% on the day.
• The services PMI expanded to 55.4 points, beating analysts’ expectations.
• Raphael Bostic, president of the Federal Reserve Bank of Atlanta, shared his economic outlook in a speech at the University of London.
• Minneapolis Fed President Neel Kashkari explained his stance on the latest interest rate cut.

The S&P 500 hit a daily low of 5,686, where it attracted buyers that pushed the index to a daily high of 5,273. At the close of trading, the S&P 500 was trading at 5,716, gaining 0.30% on the day.

S&P 500 ends session near new all-time highs

Markit Economics’ services Purchasing Managers’ Index (PMI) reported an expansion to 55.4 points, beating expectations of 55.2 but falling short of August’s 55.7.

On the other hand, the manufacturing PMI registered a decrease to 47 points, below the 47.9 recorded in August and the 48.5 expected by the market.

Atlanta Federal Reserve President Raphael Bostic said the economy is close to a sustainable path toward price stability, although he remains vigilant about inherent labor market risks. In the same vein, Neel Kashkari highlighted the substantial progress inflation has made toward the 2% target.

The S&P 500 ended the day at 5,716, 15 points below the all-time high of 5,731 reached on September 19.

Levels to consider in the S&P 500

The S&P 500 reacted to the upside at support located at 5,400, given the low of September 6. The next key support level is located at 5,090, pivot point of August 5. The closest resistance is located at 5,731, historical high reached on September 19. The Relative Strength Index is located at 63.74, showing strong buying pressure and with high probability of establishing new historical highs in the short term.

S&P 500 daily chart