- The S&P 500 stock index falls 1.40% today, currently trading above 5,820.
- Constellation Brands shares plummet 17.09%, hitting more than four-year lows of $179.55.
- US Non-Farm Payrolls stood at 256,000, above market estimates.
The S&P 500 set a daily high at 5,913, finding aggressive sellers that dragged the index to three-week lows at 5,803. Currently, the S&P 500 is trading at 5,823, losing 1.40% daily.
The S&P 500 closes with losses after the US Non-Farm Payrolls report.
Shares of beverage company Constellation Brands (CTZ) released its financial report today, reporting revenue of $2.4 billion versus the $2.55 billion projected by analysts. Likewise, CTZ obtained an earnings per share of $3.25 compared to the $3.33 expected by the market. Following these disappointing figures, CTZ shares fell 17.09%, reaching more than four-year lows not seen since November 2, 2020.
On the other hand, US Non-Farm Payrolls for December stood at 256,000, improving estimates of 160,000 and the previous record of 212,000. Likewise, the unemployment rate showed an improvement, standing at 4.1%, below the previous and expected 4.2%.
In this context, the S&P 500 concludes the day on Friday with a loss of 1.40%, reaching the lows of December 20 at 5,803.
Levels to consider in the S&P 500
The S&P 500 established short-term resistance given by the January 6 high at 6,017. The next key resistance is seen at the December 6 pivot point at 6,098. On the downside, immediate support is at 5,694, low of November 4, 2024
S&P 500 4-hour chart
S&P 500 FAQs
The S&P 500 is a widely followed stock index that measures the performance of 500 public companies and is considered a broad measure of the U.S. stock market. The influence of each company in the calculation of the index is weighted based on market capitalization. This is calculated by multiplying the number of listed shares of the company by the share price. The S&P 500 Index has achieved impressive returns: $1.00 invested in 1970 would have produced a return of almost $192.00 in 2022. The average annual return since its inception in 1957 has been 11.9%.
Companies are selected by committee, unlike other indices where they are included based on established standards. Still, they must meet certain eligibility criteria, the most important of which is market capitalization, which must be equal to or greater than $12.7 billion. Other criteria are liquidity, domicile, market capitalization, sector, financial viability, listing time, and representation of the sectors of the United States economy. The nine largest companies in the index represent 27.8% of the index’s market capitalization.
There are several ways to trade the S&P 500. Most retail brokers and spread betting platforms allow traders to use Contracts for Difference (CFDs) to place bets on price direction. In addition, you can buy index funds, mutual funds and exchange-traded funds (ETFs) that track the price of the S&P 500. The most liquid of the ETFs is the London Stock Exchange ETF. The most liquid of the ETFs is State Street Corporation’s SPY. The Chicago Mercantile Exchange (CME) offers futures contracts on the index and the Chicago Board of Options (CMOE) offers options, as well as ETFs, inverse ETFs, and leveraged ETFs.
There are many factors that drive the S&P 500, but primarily it is the aggregate performance of its component companies, revealed in their quarterly and annual earnings reports. US and global macroeconomic data also contribute, influencing investor sentiment, which if positive, drives earnings. The level of interest rates, set by the Federal Reserve (Fed), also influences the S&P 500, as it affects the cost of credit, on which many companies largely depend. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
