- The S&P 500 share index loses 0.54% on Thursday, after registering a new historical maximum in 6,433.
- The titles of Align Technology (ALGN) collapse 36.61% in the day after publishing their profit report, reaching minimums of March 19, 2020.
- Baxter International (Bax) shares fall 22.42% today, reaching minimums not seen since July 20, 2006 in 21.47 $.
- The US PERSONAL CONSUMPTION EXPENSION PRICE INDEX (PCE) increased 2.6% in June, slightly above market projections.
- Weekly requests for unemployment subsidy decreased to 218,000, improving analysts’ estimates.
The S&P 500 reacted down from a new historical maximum reached in 6,433, where it attracted aggressive vendors that took the index to minimum of July 23 in 6326. Currently, the S&P 500 operates over 6,332, falling 0.48% on Thursday.
The S&P 500 reaches minimums of more than a week after an increase in PCE inflation
According to the United States Economic Analysis Office, the Personal Consumption Expenditure Price Index (PCE) increased 2.6% in June, exceeding 2.5% provided by analysts and 2.4% observed in the previous period.
At the same time, weekly unemployment subsidy requests decreased to 218,000 in the week that ended on June 26, below the 224,000 estimated by the market.
In the stock market environment, the Aign Technology (ALGN) shares have a loss of 36.61% today, reaching minimums not seen since March 19, 2020 in 127.70 $.
ALGN obtained income for $ 1.01 billion compared to 1.06 billion dollars scheduled by consensus, as well as an action of $ 2.49, lower than the estimated $ 2,573.
Baxter International (Bax) values collapse 22.42%, visiting minimal not seen since July 20, 2006 in 21.47 $, signing its second consecutive day down.
Bax announced its quarterly report, getting revenues of 2.81 billion dollars compared to the scheduled 2.8 billion dollars. Similarly, it obtained a gain per share of 0.59 $, lower than 0.61 $ projected.
The S&P 500 spin four consecutive sessions on negative terrain, falling 20 point today, ending the day in 6,342.
Levels to be considered in the S&P 500
The S&P 500 reacted the decline from a short -term resistance given by the historical maximum reached today in 6,433. To the south, the closest support is located at 6,200, minimum of July 16. The next support zone is observed in 5,917, a pivot point of June 19.
S&P 500 DAILY GRAPH
S&P 500 – Frequently Questions
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.
