- The S&P 500 stock index gains 0.13%, reaching new all-time highs at 6,094.
- Weekly unemployment benefit claims increase to 224.00 the previous week.
- Brown Forman (BF.B) and Moderna (MRNA) lead gains in the S&P 500.
The S&P 500 rebounds from a daily low of 6,077, where it found aggressive buyers that drove the index to new all-time highs at 6,094. Currently, the S&P 500 operates at 6,092, rising 0.13% daily, marking its sixth consecutive day on the rise.
Brown Forman and Moderna take the S&P 500 to new all-time highs
The leading manufacturer of wines and spirits, Brown Forman (BF.B) presented its quarterly report in which it obtained 1.1 billion dollars compared to the 1.07 billion dollars projected by analysts. Likewise, it achieved a profit per share of $0.55, higher than the $0.493 expected by the market. Following these figures, BF.B rises 11.15%, reaching maximums not seen since October 30 at $46.22. On the other hand, Moderna (MRNA) shares rose 4.78% today, reaching two-day highs of $44.45.
According to information released by the US Department of Labor, weekly jobless claims increased to 224.00 in the week ending November 29. This figure is above the previous and estimated 215,000.
In the midst of this context, the S&P 500 registers its sixth consecutive session on the rise, registering a new all-time high at 6,094.
Levels to consider in the S&P 500
The S&P 500 formed short-term support given by the November 19 low at 5,830. The next key support zone is at 5,694, the pivot point of November 4. To the upside, we project the zone between 6,150-6,200 as a profit-taking area in convergence with the 1.272% Fibonacci extension.
S&P 500 4-hour chart
The S&P 500 FAQs
The S&P 500 is a widely followed stock index that measures the performance of 500 public companies and is considered a broad measure of the US stock market. The influence of each company in the calculation of the index is weighted based on market capitalization. This is calculated by multiplying the number of listed shares of the company by the share price. The S&P 500 Index has achieved impressive returns: $1.00 invested in 1970 would have produced a return of almost $192.00 in 2022. The average annual return since its inception in 1957 has been 11.9%.
Companies are selected by committee, unlike other indices where they are included based on established standards. Still, they must meet certain eligibility criteria, the most important of which is market capitalization, which must be equal to or greater than $12.7 billion. Other criteria are liquidity, domicile, market capitalization, sector, financial viability, listing time, and representation of the sectors of the United States economy. The nine largest companies in the index represent 27.8% of the index’s market capitalization.
There are several ways to trade the S&P 500. Most retail brokers and spread betting platforms allow traders to use Contracts for Difference (CFDs) to place bets on price direction. In addition, you can buy index funds, mutual funds and exchange-traded funds (ETFs) that track the price of the S&P 500. The most liquid of the ETFs is the London Stock Exchange ETF. The most liquid of the ETFs is State Street Corporation’s SPY. The Chicago Mercantile Exchange (CME) offers futures contracts on the index and the Chicago Board of Options (CMOE) offers options, as well as ETFs, inverse ETFs, and leveraged ETFs.
There are many factors that drive the S&P 500, but primarily it is the aggregate performance of its component companies, revealed in their quarterly and annual earnings reports. US and global macroeconomic data also contribute, influencing investor sentiment, which if positive, drives earnings. The level of interest rates, set by the Federal Reserve (Fed), also influences the S&P 500, as it affects the cost of credit, on which many companies largely depend. 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.
