- The S&P 500 is up 0.88%, remaining within the previous session’s trading range.
- Investors will be focused on the US Consumer Price Index, due out on Wednesday.
The S&P 500 set a daily low at 5,418, finding aggressive buyers who pushed the index to a session high of 5,481. At the time of writing, the S&P 500 is trading at 5,454, gaining 0.83% on the day.
Investors will focus their attention on the US Consumer Price Index.
The US Department of Labor will publish the Consumer Price Index (CPI) for August on Wednesday. The market consensus expects the year-over-year reading to come in at 2.6%, down from 2.9% in July. Current monetary policy has led to a consistent decline in inflation, which is approaching the 2% target set by the Federal Reserve.
Based on information provided by the CME FedWatch Tool, there is a 71.0% probability of setting the reference rate in a range between 5.25% and 5.50%, while a 29.00% probability of setting interest rates in a target range between 4.75% and 5.00% is considered, during the next Federal Reserve meeting to be held on September 17 and 18.
Levels to consider in the S&P 500
The S&P 500 established a short-term resistance at 5,654, given by the high of September 2. The first support is at 5,174 given by the low of August 8 which converges with the 23.6% Fibonacci retracement. The next key support is found at 5,090, pivot point of August 5. The Relative Strength Index is at 44.60, hovering near the midline of 50, awaiting the US inflation data and the interest rate decision by the Federal Reserve.
S&P 500 daily chart
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.
