- The S&P 500 share index falls 0.60% daily, consolidating within Friday’s operational range in 5,648.
- The US ISM Services PMI, rose to 51.6 points in April, improving the analysts’ forecasts.
- The United States Secretary of Commerce, Howard Lutnick, declared in an interview today that trade agreements will arrive soon.
- The titles of Zimmer Biomet Holdings (ZBH) lead the losses in the S&P 500 after publishing their profit report.
- The focus of the operators will be on the decision of interest rates by the Federal Reserve, to be released on Wednesday.
The S&P 500 marked a maximum of the day in 5,680, finding aggressive vendors that dragged the index to a daily minimum in 5,631. At the moment, the S&P 500 operates by 5,648, falling 0.60% today.
Profit in the S&P 500 pause prior to the Federal Reserve type decision
According to the United States Office Administration Office (ISM), the PMI of Services increased to 51.6 points in April, exceeding 50 estimated 6 points and 50.8 observed the previous month.
On the other hand, US Secretary of Commerce, Howard Lutnick, declared today that trade agreements are close to arriving, although he avoided giving direct details about the ongoing negotiations.
The S&P 500 goes back 0.60% today, losing 34 points which ending a streak of 8 consecutive sessions with profits, being held within the operational range of the previous session at 5,648. In this sense, the shares of Zimmer Biomet Holdings (ZBH) collapse 11.62% on Monday, reaching minimums not seen since April 3, 2020 in 89.92 $.
ZBH announced its quarterly report, obtaining income for 1.91 billion dollars compared to the 1.90 planned by consensus, as well as a gain per share of $ 1.81, compared to the $ 1,771 provided by the market. of Zimmer Biomet Holdings (ZBH) cut its annual projection of profits per share, placing them in a range at $ 7.90 and $ 8.10 from the previous range of $ 8.15 and $ 8.35, causing a mass sale by investors.
The focus of the operators will be on Wednesday about the decision of interest rates by the Federal Reserve. The consensus of analysts expects to remain unchanged in a range between 4.25% and 4.50%.
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 21 in 5,109. To the north, the closest resistance is observed by 5,784 maximum of March 25. The following important resistance is 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.
