S&P 500 index rises toward 4,450, on track for biggest one-week gain since November 2020

• US stocks are up for a fourth session, with the S&P 500 hitting its highest levels since Russia invaded Ukraine.
• The index is trading at 4,430, up 0.6% on the day and more than 5.5% on the week.
• That would mark the best earnings week since November 2020.

US stocks they are in the lead for the fourth consecutive session, with the S&P 500 reaching its highest levels since the day Russia began its invasion of Ukraine (February 24) at 4,430. The US main index rose around 0.6% on the day, taking its weekly gain to more than 5.5% after a brief drop below 4,200 was seen as a buying opportunity for the second week in a row. That means the index is on track for its best weekly gains since November 2020. Crucially, the S&P 500 is no longer trading in “correction” territory as it was at the start of the week and is now just 7.5% down. below historical maximums, touched at the beginning of the year.

The Nasdaq 100 Index is up 1.4% and is on track to post weekly gains of 7.5%, although it is still 15% below November’s record levels. The Dow rose 0.25% and is headed for weekly gains of just 5.0%, taking it within 6.5% of record levels seen earlier in the year. The strength in the equity space this week appeared to have been initially driven by optimism about supposed progress towards a Russia-Ukraine peace deal. Although reports in recent days on this have been much more mixed and conflicting, hopes for a ceasefire remain and seem to be driving some optimism in the market.

Meanwhile, some traders might have been surprised by the way stocks rose on the back of a much more hawkish-than-expected Fed policy announcement on Wednesday, but on reflection, investors seemed to see a more hawkish stance on the The rate increase is appropriate against the backdrop of high inflation and a tight labor market. As long as the Fed’s future hawkish policy changes are seen as the right policy to maximize long-term US growth prospects by investors, equities may continue to receive such announcements in a positive light. .

Moving on to Friday’s earnings; Traders attributed the strength to news that Russia had avoided a historic default on a foreign bond payment. Other traders said the call between US President Joe Biden and Chinese President Xi Jinping was positive for sentiment as both sides framed the discussion as constructive. The United States is trying to persuade China not to provide military aid to the Russians, who have requested it.

Technical levels