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US Stocks Wobble as Investors Brace for Fed, S&P 500 Returns Below $4,450

  • US stocks are trading with tensions and fall back to recent ranges due to the imminence of the Fed.
  • The Federal Reserve will keep rates steady at this meeting.
  • The FOMC will release its latest inflation expectations going forward.

All eyes are on the Federal Reserve (Fed) for this week, as the Fed’s latest interest rate call on Wednesday hangs over the markets. US stocks They retreated overall, albeit gently, and indexes extended toward the center as investors prepare for an updated playbook from the Federal Open Market Committee (FOMC).

The Standard & Poor’s 500 index (S&P) lost 10 points and left the $4,450.00 area, closing the day lower near $4,430.00 (-0.22%); the Nasdaq technological composite index fell 32 points and ended the day near $13,678.00 (-0.23%); and the Dow Jones Industrial Values ​​Index (DJIA) lost more than 105 points and ended Tuesday at $34,517.00 (-0.31%).

Stocks Trade Down, Yields Up Ahead of Fed

While stock indices fell, Treasury yields rose again, with the 2-year yield at 5.092% and the 10-year Treasury yield at 1.365%.

The Fed’s latest interest rate decision will be announced on Wednesday, and markets expect the US central bank to keep its reference rates stable.

However, the FOMC will also release its economic forecasts as well as its updated outlook on interest rates. The data agenda will be followed by the FOMC press conference 30 minutes later, where investors will be watching for any changes in the Fed’s rhetoric.

S&P 500 Technical Outlook

Daily Candlestick Charts show the main stock index firmly testing the limits of an uptrend line, and a prolonged bearish decline could see the S&P 500 begin a new leg lower to test the latest swing low below the $4,350.00.

Bullish momentum sees descending resistance from the bullish side as price highs lower into a ceiling north of the $4,500.00 area.

The 100-day simple moving average is on the rise, above $4,375.00 and could provide support for renewed bullish momentum in the index going forward.

S&P 500 daily chart

SP500 technical levels


Latest price today 4441.66
Daily change today -10.73
Today’s daily variation -0.24
Today’s daily opening 4452.39
daily SMA20 4463.14
daily SMA50 4484.59
SMA100 daily 4376.57
SMA200 daily 4190.52
Previous daily high 4464.19
Previous daily low 4439.5
Previous weekly high 4514.93
Previous weekly low 4445.7
Previous Monthly High 4590.64
Previous monthly low 4337.34
Daily Fibonacci 38.2 4448.93
Fibonacci 61.8% daily 4454.76
Daily Pivot Point S1 4439.86
Daily Pivot Point S2 4427.34
Daily Pivot Point S3 4415.17
Daily Pivot Point R1 4464.55
Daily Pivot Point R2 4476.72
Daily Pivot Point R3 4489.24

Source: Fx Street

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