- Wall Street is set to end the trading session on Tuesday higher.
- The sell-off in US Treasuries continues as the 10-year yield approaches 2.40%.
- S&P 500 Price Forecast: Bulls Calling the 200 DMA Could Open the Door for Further Gains.
US stocks they rebounded on Tuesday, following aggressive comments on Monday from Fed chief Jerome Powell, who said “inflation is too high” and opened the door for 50 basis point hikes.
The S&P 500 advanced 1.10% to 4,517 above the 200-day moving average (DMA), a bullish sign for downside buyers. Meanwhile, the tech-heavy Nasdaq is up almost 2% to 14,106.28, while the Dow Jones Industrial is up 0.69% to 34,792.36.
On Monday, the President of the US central bank, Jerome Powell, said that “if we conclude that it is appropriate to act more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will.”
Meanwhile, money market futures have priced in at least a 63.9% chance of a 50 basis point increase in the Federal Funds Rate (FFR) at the Fed’s May 4 policy meeting, as shown by CME Fed Watch Tool.
Meanwhile, the sell-off in US Treasuries continues, as reflected by rising US Treasury yields. The 10-year yield gains six basis points to 2,384%. The dollar is down just 0.01% to 98,461.
By sectors, consumer discretionary, communication services and finance increased by 2.65%, 2.17% and 1.62%, respectively. Meanwhile, the energy sector is up 0.57%, weighted by the Russia-Ukraine feud, while Hungary and Germany backtracked on bans on Russian oil.
S&P 500 Price Forecast: Technical Outlook
The S&P 500 topped the 200 DMA at 4,473.08, as mentioned above. However, a daily close above would open the door for further gains. However, since stocks are highly sensitive to market sentiment, stock traders should be aware of this before opening new bullish bets on the S&P 500 Index.
That said, the first resistance for the S&P 500 would be 4,545.85 in September. Once broken, the next resistance would be the daily high at 4,595.81, below that, the next resistance is 4,600.
Source: Fx Street
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