- S&P 500 Index futures move slightly lower ahead of the opening bell.
- The S&P 500 made a strong recovery last week after sentiment improved.
- The lack of positive news around the Russia-Ukraine talks could weigh on sentiment and limit further upside in the S&P 500.
index futures S&P 500 move slightly lower before the opening bell on Monday, consolidating the recent rise from the region of 4,130 points reached the previous week. At time of writing, the index is down 0.0% on the day, trading at the 4,458 point level.
The S&P 500 made a strong recovery last week after sentiment improved. The index recovered from a low near 4,130 points to end the week near 4,475.
Even though there has been no progress in talks for a diplomatic solution in the war between Russia and Ukraine, market sentiment improved after the aggressive decision of the Federal Reserve. The Fed raised rates by 25 basis points as expected and the central bank’s forecast materials called for six more rate hikes this year.
Although rate hikes may weigh on growth, the president Powell defined the US economy as “very strong” with an “extremely tight” labor market, and that “it could withstand higher rates”, which boosted sentiment in US stocks. In addition, two influential FOMC members said on Friday that the US central bank needs to take a more aggressive policy stance to combat stubbornly high inflation.
On the other hand, the lack of positive news surrounding the Russia-Ukraine talks could weigh on sentiment and limit further upside in the S&P 500. The Kremlin has said in a statement on Monday that there is no basis for a possible meeting between Putin and Zelenskyy, as significant progress must first be made. He further adds that “Russia is ready to work faster on negotiations than Ukraine” and that “no agreements have yet been reached in the negotiations”, further stating that “progress in talks with Ukraine ‘less than we would like’”.
Investors’ focus now shifts to a scheduled speech by Fed Chairman Jerome Powell later in the American session. This, coupled with incoming news on the Russia-Ukraine conflict, should guide market sentiment and fuel the next move in the S&P 500.
S&P 500 technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
