S&P 500 soars on U.S. economic data

  • The S&P starts the day higher, rising 35 points.
  • The core personal consumption expenditures (PCE) price index rose 2.6% in May, in line with the market.
  • The University of Michigan’s Consumer Sentiment Index beat analyst expectations.

The S&P 500 hit a daily low at the start of the American session at 5,484, rebounding to hit a daily high at 5,519. At the time of writing, the S&P 500 is trading at 5,511, gaining 0.60% today.

University of Michigan Consumer Sentiment Index Beats Market Estimates

The University of Michigan Consumer Sentiment Index has improved market forecasts by standing at 68.2 points, above the 65.8 expected by the market. This figure is lower than its previous reading of 69.1 for May. On the other hand, the 5-year consumer inflation expectation component remained stable at 3%, improving the consensus that placed it at 3.1%.

According to data from the Bureau of Economic Analysis, the Personal Consumption Expenditures (PCE) Core Price Index registered an annual increase of 2.6% in May, in line with analysts. This result is after the 2.8% increase in April, marking its lowest figure since March 2021.

He PCE The monthly underlying inflation rate was 0.1%, down from 0.3% in the previous record, in line with expectations and reaching its lowest level in five months.

Technical levels in the S&P 500

The S&P 500 is in an uptrend, with the first support at 5,485, confluenced by the 50% Fibonacci retracement. The next support is at 5,460, given by the low of the June 27 session. The closest resistance is at the 168% Fibonacci extension projected at 5,566.

S&P 500 1-hour chart

Source: Fx Street

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