The S&P 500 pauses its profits after the comments of the Federal Reserve members

  • The S&P 500 stock index falls 0.40% daily, currently quoting over 5,938.
  • Fair Isaac Corporation Fair (FICO) collapse 8.11%, reaching minimums not seen since April 25 in $ 1,900.
  • Beth Hamack, president of the Cleveland Federal Reserve, highlighted in her speech that government policies continue to make decisions difficult.
  • The president of the St. Louis Federal Reserve, Alberto Musalem, said that uncertainty in economic policy is unusually high.
  • Raphael Bostic, president of the Fed of Atlanta, mentioned that companies cannot delay their response to tariffs.

The S&P 500 marked a maximum of the daily day in 5,955, attracting aggressive vendors that dragged the index to a minimum of the day in 5908. At the time of writing, the S&P 500 operates over 5,938, losing 0.40% on the second day of the week.

The S&P 500 concludes Tuesday on the negative field attentive to the comments of the members of the Fed

In the middle of a day with little participation, the center of the stage was occupied by the comments of the Federal Reserve members. On the one hand, the president of the Fed of Cleveland, Beth Hamack, warned that government policies affect economic decision making, so I see an increase in the probabilities of a stagflation scenario, where a low growth with high inflation is combined.

At the same time, the president of the Federal Reserve of Atlanta, Raphael Bostic, was sharp by pointing out that companies cannot delay their response to the tariff context, since they are executing contingency plans.

In the same tune, Alberto Musalem, president of the Fed of St. Louis, stressed that uncertainty in economic policy is unusually high, noting that tariffs have both a temporary and persistent effect on inflation.

In this sense, the S&P 500 presents a fall of 23 points, recovering 0.40% today, consolidating within the operational range of the May 19 session.

The Fair Isaac Corporation (FICO) titles collapse 8.11% today, reaching minimums of April 25 in $ 1,900, ending with a streak of three consecutive days upwards.

Levels to be considered in the S&P 500

The S&P 500 established a short -term support given by the minimum of April 30 in 5.430. The next key support level is in 4.810, minimum of April 7. To the north, the key 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

You may also like