S&P500 (SPX) Price Analysis – Feb 07, 2025
Daily Price Outlook
The S&P 500 rose 0.3% on Thursday, its third straight gain, while the Nasdaq Composite added 0.5%. The Dow Jones Industrial Average fell 125 points (-0.30%) as investors were cautious before the US Non-Farm Payrolls (NFP) report on Friday.
Weekly jobless claims came in at 219,000, slightly above the 214,000 expected, indicating a mild slowdown in the labor market. While private payrolls grew in January, job openings saw the largest decline in 14 months, which may delay rate cuts until at least June 2025.
Tech Stocks Face Pressure Amid AI Investment Concerns
Earnings reports were in focus with Amazon (AMZN) to report after the close. Investors were keen on the company’s AI investment plans following capital expenditure concerns among Big Tech. Alphabet (GOOG) was sold off after its 2025 outlook exceeded Wall Street estimates.
Meanwhile Eli Lilly (LLY) rose 3% on strong Zepbound demand and Yum! Brands (YUM) jumped 9% on Taco Bell sales. Ford (F) fell 7% after profit guidance missed estimates and uncertainty over US, Canada and Mexico trade talks.
Chip Stocks Slide Ahead of Key Economic Data
The semiconductor sector was under pressure with Qualcomm (QCOM) down 3% after patent licensing outlook disappointing after the Huawei contract expired. Arm Holdings (ARM) fell 3% after missing high expectations for AI-driven growth and Skyworks Solutions (SWKS) plunged 24% after warning of reduced Apple (AAPL) demand for iPhone 17.
Now investors are looking to Friday’s NFP report which is expected to show 169,000 new jobs, down from 256,000 in December. A weaker print may support rate cuts later in the year while a stronger print may mean higher for longer rates and keep markets on edge.
S&P 500 – Technical Analysis
The S&P 500 (SPX) is trading at 6083.56, up 0.36%, as the index continues its bullish momentum amid strong investor confidence. With market participants weighing Federal Reserve policy expectations and earnings results, the broader trend remains constructive.
The pivot point at 6057.69 is a key reference level for traders. A sustained move above this level strengthens the bullish outlook, with immediate resistance at 6127.64, followed by 6171.70 and 6219.27. If momentum persists, the index could target fresh highs, reinforcing optimism in equity markets.
On the downside, support lies at 6013.62, followed by 5969.55 and 5904.50. A break below these levels would signal weakness, potentially triggering a short-term pullback. However, strong buying interest near the pivot suggests continued resilience in the broader trend.
The 50-day EMA at 6057.18 acts as dynamic support, confirming the index's uptrend. As long as the price remains above this level, the bullish bias stays intact. A close below it could indicate a loss of momentum, bringing 6013.62 into focus as key support.
S&P 500 remains bullish above 6058, with a suggested buy entry at this level, targeting 6127 as a take-profit zone. A stop-loss at 6013 is recommended to manage downside risks.
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