- The S&P 500 index reaches a maximum of about 5,660 points
- Dow Jones rises 0.64% just before closing.
- The ISM manufacturing PMI backets to 48.7 in April, improving the 48 expected by the market.
- China confirms the conversations to reach a commercial agreement with the United States.
The S&P 500 has shown profits during the Wall Street session on Thursday, reaching a maximum of one month in 5,658 points. Just before closing, the index moves around 5,637 points, winning 1.24% in the day.
The conversations between the US and China, and the manufacturing ISM best as expected maintain optimism in the S&P 500
The S&P 500 index records its third consecutive upload day this Thursday. American bags rise animated by the optimism of the words of US President Donald Trump, who last yesterday said he is about to reach agreements with Japan, India and South Korea. In addition, he assured that there were many chances of reaching a good agreement with China. The authorities of the Asian giant have confirmed in the last hours that there are negotiations.
On the other hand, after the weak data of yesterday that showed a contraction of the growth of the US economy in the first quarter of the year, the PMI Manufacturing of the ISM has been a surprise. The indicator has shown that the manufacturing sector descended in April 48.7 points from March 49, improving the 48 points expected by the market. The fact made the dollar index (DXY) to rise, rising to three -week maximums in 100.37.
Microsoft and Meta lead the gains of the index with Quanta Services and Carrier
Quanta Services, specialized in industry infrastructure, earns more than 10% before closing while Carrier shoots 11.82%. Microsoft collects the fruits of your earnings report yesterday and almost 9%is triggered. Goal does the same and rises 5.31%.
The focus is now in the Amazon Profit Report that will be known after the closure. At this time, the company’s shares rise 3.53%.
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 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.
