- The S&P 500 stock index loses 1.28% daily, quoting when writing about 5,704.
- Donald Trump has imposed 25% tariffs on non -native vehicles from the United States.
- The requests for durable goods increase 0.9% in February compared to the 1% decrease expected by analysts.
- The president of the Federal Reserve of St. Louis, Alberto Musalem, projects that inflation returns to 2% by 2027.
The S&P 500 established a maximum of the day in 5,782, where it found aggressive vendors that took the index to lower levels of March 24 in 5,692. At the moment, the S&P 500 operates in 5,704, losing 1.28% in the day.
The increase in commercial tensions lies to S&P 500 to negative field
Donald Trump has signed an executive order today in which he imposes a 25% tariff on all import cars. This action is after the statements made on Tuesday, when the president of the United States mentioned the application of copper tariffs in the coming weeks, surprising the financial markets.
In this regard, Alberto Musalem, president of the Fed of St. Louis, said that the effect of Trump’s policies remains uncertain, waiting for the inflationary objective of 2% to be achieved in 2027.
On the other hand, the orders of the US durable goods increased 0.9% in February, improving estimates of a 1% contraction. This figure is below the 3.3% observed in January.
The actions of Super Micro Computer (SMCI) lead the losses in the S&P 500, losing 8.86% today, reaching minimal not seen since March 11 at 36.62 $, signing two consecutive sessions downward.
The S&P 500 ends with a three consecutive days streak with profits, going back 1.28% in the day, falling 73 points and ending the session by 5,704.
Levels to be considered in the S&P 500
The S&P 500 established a short -term resistance given by the maximum of March 25 in 5,784. The next key resistance is observed by 6,007, maximum of February 26 in convergence with the decline of 23.6% of Fibonacci. Down, the key support is located in 5,504, pivot point of March 13.
4 -hour graph of the S&P 500
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.
