- The S&P 500 share index wins 1.72% on the last day of the week, operating at the time of writing about 5,354.
- The Production Price Index (IPP) increased by 2.7% annualized in March, improving analysts’ forecasts.
- The feeling of the consumer of the University of Michigan contracts 50.8 points in April, located below market estimates.
- The White House Secretary, Karoline Leavitt, showed her optimism by announcing that Donald Trump is possible to ensure a commercial agreement with China.
- The president of the Boston Fed, Susan Collins, said that the monetary authority is ready to use monetary policy tools if market conditions require it.
The S&P 500 marked a minimum of the day in 5,219, finding buyers who took the index to a daily maximum in 5,379. At the time of writing, the S&P 500 quotes at 5,354, rising 1.72% today.
Investors are optimistic about a possible commercial agreement between the United States and China
Based on information published by the Office of Labor Statistics of the United States, the Production Price Index (IPP) registered an increase of 2.7% in annual terms during March, below the 3.3% expected by the market and 3.2% observed in February.
On the other hand, the feeling of the consumer of the University of Michigan contracted 50.8 points in April compared to the 54.5 points provided by the consensus. This figure stood below the 57 points observed in March.
Karoline Leavitt, White House Press Secretary, announced that the president of the United States, Donald Trump, is possible to achieve a commercial agreement with China, despite the intense commercial war that has been concerned with financial markets, recently.
In this scenario, the S&P 500 presents a gain of 1.72% today, operating currently over 5,354, consolidating within the operational range of Thursday’s session.
Levels to be considered in the S&P 500
The S&P 500 reacted upwards from a short -term support given by the minimum of April 7 in 4.810. To the north, the closest resistance is observed in 5,784, maximum of March 25 in convergence with the exponential mobile average of 21 periods. The next key resistance is observed in 6,145, pivot point 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 that are included based on 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.
