- The S&P 500 share index decreases 0.54% daily, consolidating within the operational range of the previous session in 5,886.
- Cadence Design Systems, INC (CDNS) collapses 10.67% today, reaching April 28 at 284.32 $.
- The Federal Reserve minutes showed their concern about the inflationary risks caused by tariff uncertainty.
- The focus of investors revolves around the gross domestic product of the first quarter of the year.
The S&P 500 registered a maximum of the day in 5,938, finding aggressive vendors that dragged the index to a minimum of the day in 5,880. Currently, the S&P quotes in 5,886, losing 0.54% today.
The Federal Reserve reflects its inflationary concern in its latest minutes
The minutes of the Federal Open Market Committee (FOMC) warned more persistent inflationary risk course than expected, which citing uncertainty when yearning as a key factor, affecting economic growth.
On the other hand, the president of the United States, Donald Trump, asked the semiconductor designer companies to suspend their sales to Chinese companies.
After this news, the S&P 500 loses 31 points falling 0.54% in the day, ending with two consecutive sessions with profits. In this sense, the actions of Cadence Design Systems, INC (CDNS) presents a drop of 10.67% today, reaching a minimum of April 28 in 284.32, signing its second consecutive day down.
The US economic agenda contemplates the gross domestic product of the first quarter of the year, the analyst consensus projects a 0.3%decrease, online the reading of the previous period.
Levels to be considered in the S&P 500
The S&P 500 formed a short -term support given by the minimum of May 23 in 5,742. The following important support is in 5.430, given by the minimum of April 30 in convergence with the exponential mobile average of 13 periods. To the north, the key resistance is in 6,145 maximum of February 19.
S&P 500 DAILY GRAPH
S&P 500 FAQS
The S&P 500 is a very often stock index that measures the yield of 500 public companies and is considered a wide measure of the US stock market. The influence of each company on the calculation of the index is weighted based on stock capitalization. This is calculated by multiplying the number of bought shares of the company for the price of the action. The S&P 500 index has achieved impressive yields: 1.00 $ invested in 1970 would have produced a yield of almost $ 192.00 in 2022. The average annual profitability since its creation in 1957 has been 11.9%.
Companies are selected by committee, unlike other indices included in established standards. Even so, they must fulfill certain eligibility criteria, the most important of which is stock market, which must be equal to or greater than 12.7 billion dollars. Other criteria are liquidity, domicile, stock capitalization, sector, financial viability, quotation time and representation of the sectors of the United States economy. The nine largest companies in the index represent 27.8% of the stock market capitalization.
There are several ways to operate with the S&P 500. Most of the Stred Betting retail runners and platforms allow operators to use contracts per difference (CFD) to make bets on the price direction. In addition, indexed funds, investment funds and quoted funds (ETF) that follow the price of the S&P 500 can be purchased. The most ETF liquid is the ETF of the London Stock Exchange. The most ETF liquid is the State Street Corporation Spy. The Chicago Mercantile Exchange (CME) offers futures contracts on the index and the Chicago Board of Options (CMOE) offers options, as well as ETF, ETF Inverse and ETF leverage.
There are many factors that promote S&P 500, but mainly it is the aggregate performance of the companies that compose it, revealed in their reports of quarterly and annual results. American and world macroeconomic data also contribute, since they influence investors’ confidence, which is positive drives profits. The level of interest rates, set by the Federal Reserve (FED), also influences the S&P 500, since it affects the cost of credit, which is largely depending on many companies. 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.
