S&P 500 extends the rise and approaches 4,400 points

  • The S&P 500 shoots higher at the start of the American session on Thursday.
  • The Fed kept its interest rate unchanged, as expected.
  • The Fed projections imply two new 25 basis point rate hikes this year.
  • The European Central Bank has announced a 25 basis point hike at its June monetary policy meeting, with work still to be done.

The index S&P 500 extends the recent rise and is approaching the level of 4,400 points at the start of the American session on Thursday. At time of writing, the index is trading in the zone of daily highs at 4,390 points, up 0.45% on the day after recovering strongly from daily lows around the 4,345-4,350 region.

The S&P 500 has extended its recent rally after having broken above 4,200 points earlier this month on optimism over the agreement reached in the United States (USA) to suspend the debt ceiling limit and avoid a default by the world’s largest economy.

to this I know joins the decision of the Federal Reserve (Fed) of the United States (USA) to leave rates unchanged on Wednesday.

Following Wednesday’s June policy meeting, the Fed kept its interest rate unchanged in the 5-5.25% range, as expected. The entity decided take your first break after ten consecutive rate hike meetings.

The Summary of Economic Projections showed that the projection of the terminal interest rate for the end of 2023 was revised upwards, standing at 5.6% compared to 5.1% in March. The dot plot puts the rate by the end of 2024 at 4.6%, up from the 4.3% previously projected. In summary, Fed projections imply two more 25 basis point rate hikes this year and 100 bps of rate cuts in 2024.

During the press conference after the meeting, the president of the Federal Open Market Committee (FOMC), Jerome Powell, confirmed that further rate hikes this year are seen as appropriate by almost all policy makers and that much remains to be done to bring inflation back to the central bank’s 2% target. Powell added that the Fed’s projections are not a plan or a decision and that they will continue to making decisions meeting by meetingso a decision on July has not yet been made.

During today’s European session, The European Central Bank (ECB) has announced a rise of 25 basis points at its June monetary policy meeting, raising its interest rates to 4% from 3.75% previously, as expected. This is the highest rate since October 2008.

In the ECB statement, the Council stressed that inflation has fallen, but is expected to remain too high for too long. The Governing Council will continue to apply a data-driven approach to determine the appropriate level of restriction and duration.

As for US economic data, monthly retail sales figures, weekly jobless claims, the Empire State manufacturing index, the Philadelphia Fed manufacturing index and production were released on Thursday. industrial.

Data published by the US Census Bureau have revealed that US retail sales increased 0.3% in May, up to 686.100 million dollars. This reading followed the 0.4% increase recorded in April. Market consensus pointed to a decline of 0.1%.

On the other hand, weekly claims for unemployment benefits rose to 262,000 in the week ending June 10, according to data published by the US Department of Labor. The figure follows the previous week’s 261,000 (revised to 262,000) and is above market expectations of 249,000. It is the highest figure since October 2021.

Regarding the manufacturing data, the Federal Reserve Bank of New York Empire State Manufacturing Survey general index rebounded to 6.6 points in June from -31.8 in May. This result exceeded market expectations, which placed it at -15.1, while the Federal Reserve Bank of Philadelphia manufacturing index fell to -13.7 points in June from -10.4 in May. This figure was above market expectations of -14. It was the tenth consecutive negative reading.

Finally, industrial production fell 0.2% in Maymissing expectations for a 0.1% increase.

S&P 500 daily chart

sp500

S&P 500 technical levels

SP500

Panorama
Last Price Today 4389.51
Today’s Daily Change 18.95
Today’s Daily Change % 0.43
Today’s Daily Open 4370.56
Trends
20 Daily SMA 4239.08
SMA of 50 Daily 4168.63
SMA of 100 Daily 4097.81
SMA of 200 Daily 3981.17
levels
Previous Daily High 4389.67
Minimum Previous Daily 4336.25
Previous Weekly High 4319.7
Previous Weekly Minimum 4258.79
Maximum Prior Monthly 4233.24
Minimum Prior Monthly 4046.4
Daily Fibonacci 38.2% 4369.26
Daily Fibonacci 61.8% 4356.66
Daily Pivot Point S1 4341.32
Daily Pivot Point S2 4312.07
Daily Pivot Point S3 4287.9
Daily Pivot Point R1 4394.74
Daily Pivot Point R2 4418.91
Daily Pivot Point R3 4448.16

Source: Fx Street

You may also like