- The S&P 500 stock index loses 1.56% daily, operating at the moment over 5,862.
- The president of the United States, Donald Trump, confirms the imposition of 25% tariffs on Mexico and Canada for March 4.
- The Gross Domestic Product of the United States grows 2.3% in January, in line with the expected.
- Petitions of durable goods increase by 3.1%, above analysts’ estimates.
- Patrick Harker, president of the Fed of Philadelphia, said in his speech today that progress in inflation has slowed down.
The S&P 500 established a daily maximum in 5,998, attracting aggressive vendors that dragged the index to minimums not seen since January 15 in 5,859. Currently, the S&P 500 quotes about 5,862, losing 1.56% today.
The S&P 500 slides in the middle of the commercial war and economic data of the United States
Today, the US president, Donald Trump, announced the imposition of 25% tariffs on Canada and Mexico from March 4, as well as an additional increase of 10% to products from China.
On the other hand, the Gross Domestic Product of the United States rose 2.3% in January, fulfilling the expectations of analysts. Similarly, the requests for lasting goods increased 3.1%, above 2% estimated by the market.
The president of the Federal Reserve of Philadelphia, Patrick Harker, said that progress in inflation has slowed down, although it remains optimistic about the economic perspective, reiterating that the monetary authority will observe the data and react if necessary.
After this news, the S&P 500 index registers a drop of 1.56% today, reaching minimums not seen for six weeks in 5,859, resuming the bearish perspective in tune with the main share rates.
Levels to be considered in the S&P 500
The S&P 500 established a short -term resistance given by the maximum of February 26 in 6,007, in convergence with the 61.8% fibonacci decline. The next key resistance is observed in 6,145 maximum of February 19. Down, the key support is located in 5765, a pivot point of January 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.
