The S&P 500 rises for the fifth consecutive day, reaching a new all-time high

  • The S&P 500 stock index rose 0.49% daily, registering a new all-time high at 6,114.
  • Moderna (MRNA) is up 10.10% on the day, currently trading above $42.39
  • Weekly unemployment benefit claims increase to 223,000, exceeding analysts’ forecasts.
  • Investors will focus their attention on S&P Global’s US manufacturing and services PMIs tomorrow.

The S&P 500 set a daily low at 6,065, where it attracted aggressive buyers that drove the index to a new all-time high at 6,114. At the time of writing, the S&P 500 is trading above 6,113, up 0.49% today.

Moderna Stock Drives S&P 500 to New All-Time Highs

Moderna (MRNA) extends its gains and rebounds 10.10% today, reaching January 10 highs of $42.54. The company will release its earnings report on February 13. The analyst consensus projects revenue of $995.44 million and a loss per share of $2.73.

On the other hand, weekly requests for unemployment benefits increased to 223,000 for the week ending January 17, exceeding the 220,000 projected and the 217,000 reached in the previous week.

In the midst of this context, the S&P 500 registers five consecutive sessions on the rise, marking a new all-time high at 6,113.

Investors will focus on the S&P Global United States manufacturing and services PMIs, to be published tomorrow.

Levels to consider in the S&P 500

The S&P 500 established short-term support given by the January 20 low at 5,983, converging with the 61.8% Fibonacci retracement. The next key support level is at 5,765, the January 13 low. To the north, we project a profit-taking zone at 6,200, converging with the 127.2% Fibonacci extension.

S&P 500 4-hour chart

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

You may also like

BBB25: Renata wins 5th Angel race
Entertainment
Robert

BBB25: Renata wins 5th Angel race

Renata won the Angel Proof that happened this Saturday (15). The dispute had three phases and the participant managed to