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The S&P 500 operates without significant changes pending the CPI and the Fed’s rate decision

  • The S&P 500 maintains a low volume session, establishing an operating range of 16 points.
  • The US Federal Reserve Bank will announce its interest rate decision on June 12.

The S&P 500 started the European session lower reaching a daily low of 5.328, finding buyers who took the index to a daily high of 5344. Currently, it trades at 5.342 losing 0.04% daily.

Investors will focus on the CPI and the Federal Reserve’s interest rate decision

Investors will focus their attention on June 12 when the US CPI is released. In a general reading it is expected to remain at 3.4%, although year-on-year it is expected to be 0.1% compared to the previous 0.3%. In relation to the underlying reading that excludes food and energy, 0.3% is expected in its interannual reading and 3.5% in the general one. Later, the Federal Reserve will make its interest rate decision public. In a context where an improvement is observed in the labor market in the short term, inflation has not reached the objectives desired by the Central Bank. The market consensus does not expect surprises and estimates that the Federal Reserve will maintain the interest rate at 5.5%.

Technical levels in the S&P 500

The bullish trend prevails in the S&P 500, with the first short-term support being the level of 5,191, in convergence with the 50% Fibonacci retracement. The next key support is at 5,009, the May 3 low. We observe possible resistance at 5,630 which corresponds to the 161.8% Fibonacci extension.

S&P 500 daily chart

Source: Fx Street

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