S&P 500 hits new all-time high ahead of Jerome Powell’s Senate appearance

• The S&P 500 marks its fifth consecutive session of gains and registers a new all-time high at 5,579.
• Jerome Powell will appear in the Senate this week for his semi-annual appearance.
• The market will focus on the publication of the US Consumer Price Index next Thursday.

The S&P 500 posted a daily low of 5,554, finding buyers who were keen to take the index to new all-time highs of 5,579 during the American session. At the time of writing, the index is trading at 5,576, gaining 0.23% on the day.

Investors will focus on Jerome Powell’s appearance and the Consumer Price Index

Federal Reserve Chairman Jerome Powell is set to testify before the US Senate later this week. Investors will be looking to his remarks to find out where the Fed stands on future interest rate moves.

The increased chances of a monetary policy easing have been justified by the recent weakening of employment, as well as the recent downward trend in inflation. In this context, the Consumer Price Index will be released next Thursday, where a decrease to 3.1% in June in its annual reading is expected, compared to the previous 3.3%.

Based on the CME FedWatch tool, we observe an increase in the target rate range between 5.00% and 5.25% compared to the previous week’s range of 5.25% and 5.50%.

Technical levels in the S&P 500

We see a first support at 5,524, the low of July 5, where it reacted strongly upwards. The next support is at 5,510, which is concurrent with the 50% Fibonacci retracement. The closest resistance is at the psychological level and closed number 5,600.

S&P 500 4-hour chart