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S&P 500: Stocks lose steam and point to a negative open

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S&P 500: Stocks lose steam and point to a negative open
  • After Tuesday’s strong rise, Wall Street points down.
  • The dollar tries to recover after three days with losses.
  • Metals fail to assert recovery.

Wall Street futures are falling on Wednesday after Tuesday’s strong gain. The positive figure for US retail sales gradually gave way to expectations of a monetary tightening by the Federal Reserve.

Stocks correct lower

The S&P 500 closed more than 2% higher on Tuesday, but futures point to a negative open on Wednesday with a 0.70% drop in the prior. Dow Jones futures lose 0.50% and Nasdaq futures 1%. In Europe, the FTSE 100 fell 0.20% and the CAC 40 fell 0.25%.

On Tuesday the chairman of the Federal Reserve said that the central bank will continue to raise interest rates until inflation is under control. This modestly raised expectations for Fed monetary tightening and is one of the reasons analysts cited for the weak tone in equity markets. In other news, an increase in cases of covid in China and Finland and Sweden formally filled out applications to enter the NATO.

In Europe, statements by officials of the European Central Bank continue pointing to a prompt rise in interest rates. This fails to give the euro a big boost. The EUR/USD trades above 1.0500, although analyst forecasts about the possibility of going towards parity are growing.

The dollar it is gradually recovering on Wednesday, buoyed by higher Treasury yields and lower stock markets. The 10-year rate is at a one-week high of 3.01%. Today there will be a 20-year debt placement in the US The DXY rises 0.25%, cutting three days low.

Metals are trading flat, after losing strength on Tuesday. Gold is approaching $1,800 again, after reaching $1,836. Silver is trading at $21.60, the same level where it closed on Monday. Oil prices rise more than 2%, with persistently high volatility. The main cryptocurrency, the Bitcoinfails to assert himself and remains under pressure, below $30,000.

The economic calendar shows the start-up report and building permits ahead. In addition, Patrick Harker, the president of the Federal Reserve Bank of Philadelphia, will speak about the economic outlook. The results presentation season continues, with Target and Cisco among others. Walmart Tuesday had the worst day since 1987, losing more than 10%.

Technical levels

SP500

Panorama
Last Price Today 4071.62
Today’s Daily Change -17.40
Today’s Daily Change % -0.43
Today’s Daily Opening 4089.02
Trends
20 Daily SMA 4153.14
50 Daily SMA 4325.61
100 Daily SMA 4410.08
200 Daily SMA 4477.68
levels
Previous Daily High 4089.37
Previous Daily Minimum 4021.53
Previous Maximum Weekly 4095.91
Previous Weekly Minimum 3858.25
Monthly Prior Maximum 4592.12
Previous Monthly Minimum 4122.09
Daily Fibonacci 38.2% 4063.46
Daily Fibonacci 61.8% 4047.44
Daily Pivot Point S1 4043.91
Daily Pivot Point S2 3998.8
Daily Pivot Point S3 3976.07
Daily Pivot Point R1 4111.75
Daily Pivot Point R2 4134.48
Daily Pivot Point R3 4179.59

Source: Fx Street

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