The S&P 500 takes up the bassist trend fed by Donald Trump’s tariff concerns

  • The S&P 500 stock index loses 1.09%, quoting when writing at 5,530.
  • Donald Trump’s tariff rhetoric has turned to the European Union, threatening to impose tariffs on specific products in the region.
  • The United States production price index increased by 3.2% annualized in February, under market expectations.
  • Weekly applications of unemployment subsidy decreased to 220,000 in the week that ended on March 7, improving analysts projections.

The S&P 500 marked a maximum of the day in 5,602, attracting aggressive vendors that dragged the index at least six months in 5,504. Currently, the S&P 500 operates in 5,530, falling 1.09% on Thursday.

Trump’s commercial threats increase the volatility of financial markets

Donald Trump threatened today with the imposition of a 200% tariff on wines from the European Union if the region does not yield in the 50% tariff on the whiskey produced in the United States. This measure was carried out how he retaliates against the 25% global tariff on steel and aluminum that entered into force this week.

On the other hand, the weekly requests for US unemployment subsidy were located in 220,000 in the week that ended on March 7. This figure improves the estimated 225,000 and the 222,000 reached the previous week.

Similarly, the production price index rose 3.2% annualized in February, below the 3.3% estimated by analysts and 3.7% observed in January.

In this context, the S&P 500 takes up the short -term bassist trend, reaching minimums not seen since September 11, 2024 in 5,530. The attention of the operators will now be fixed in the feeling of the consumer of the University of Michigan, which is expected to be located at 63.1 points in March, slightly below 64.7 reached in February.

Levels to be considered in the S&P 500

The S&P 500 established a short -term resistance given by the maximum of March 5 in 5,857. The following key resistance is found in 6,007, maximum of February 26 in convergence with the recoil at 78.3% of Fibonacci and with the exponential mobile average of 21 periods. Down, the important support is observed in 5,400, pivot point of September 6, 2024.

4 -hour graph of the S&P 500

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

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