S&P500 (SPX) Price Analysis – March 14, 2025
Daily Price Outlook
The global market sentiment has been flashing red as witnessed by the continued decline in the S&P 500 (SPX), which hit an intra-day low of 5,504.
However, the ongoing concerns over US trade policies and the strengthening US dollar have put pressure on market sentiment.
Investors are worried that former President Donald Trump’s tough trade stance could shake up global markets, making businesses and traders uncertain about the future.
Moreover, expectations are rising that the Federal Reserve (Fed) might increase interest rates multiple times this year.
This has given the US dollar a boost, making it stronger, but at the same time, it has put more pressure on the stock market. As a result, investors are staying cautious, watching closely how these factors will impact the economy and their investments.
Stronger US Dollar Weighs on S&P 500 Amid Cooling Inflation
On the US front, the broad-based US dollar has been gaining strong traction in the wake of stronger-than-expected jobless claims and softer Producer Price Index (PPI) data.
This combination of economic indicators has fueled optimism about the US economy, boosting demand for the greenback.
As a result, the US Dollar Index (DXY), which measures the USD against six major currencies, has gained momentum.
At the time of writing, DXY is trading around 104.00 as investors shift their attention to the upcoming Michigan Consumer Sentiment Index data.
Meanwhile, the previously released labor market data showed that Initial Jobless Claims came in at 220,000 for the week ending March 7, lower than the expected 225,000. Additionally, continuing claims dropped to 1.87 million, below the forecasted 1.90 million, indicating resilience in the US job market.
Whereas, inflationary pressures eased, with the US PPI rising 3.2% year-over-year in February, down from 3.7% in January and below the 3.3% forecast.
Core PPI, which excludes food and energy, increased 3.4% annually, slowing from 3.8% in January. On a monthly basis, the headline PPI remained unchanged, while core PPI fell by 0.1%.
Therefore, the S&P 500 faced downward pressure as a stronger US dollar and resilient job data fueled concerns about prolonged higher interest rates, while easing inflation provided limited relief to equity markets.
Trade Policy Uncertainty and Geopolitical Risks Exacerbate Market Jitters
Apart from this, President Trump’s latest trade threats intensified fears of global economic instability. Trump recently announced a potential 200% tariff on all European wines and champagne via his social media account, raising concerns over heightened trade tensions.
This move has amplified fears of retaliatory measures from the European Union, potentially disrupting global trade flows and corporate earnings.
Meanwhile, Senate Democratic Leader Chuck Schumer confirmed his support for a GOP stopgap funding bill to keep the government open, but political uncertainty over fiscal policy continues to worry investors.
US Commerce Secretary Howard Lutnick emphasized the administration’s plan to balance the budget within three years under Trump.
While this shows a focus on fiscal discipline, investors fear that aggressive spending cuts could slow economic growth.
As a result, the S&P 500 remains under pressure, with markets reacting cautiously to ongoing political and economic uncertainties.
Looking ahead, investor focus remains on the upcoming Michigan Consumer Sentiment Index data, which could provide further insights into consumer confidence and spending trends.
S&P 500 – Technical Analysis
The S&P 500 (SPX) is trading at 5521.53, holding steady after a strong run, but facing resistance as traders assess macroeconomic conditions.
The index remains above the pivot point at 5510.29, suggesting underlying strength, yet the momentum appears to be losing steam near key resistance at 5599.36. A breakout above this level could fuel further gains toward 5685.55 and 5780.12, reinforcing the longer-term uptrend.
However, downside risks persist, particularly if SPX fails to hold above 5510.29. Immediate support sits at 5406.38, and a break below this level could expose the index to a deeper pullback toward 5313.07 and 5200.68.
The 50-day EMA at 5764.78 remains a critical long-term marker, currently indicating a stretched market that may be due for consolidation or correction.
Investor sentiment remains cautious ahead of key economic events, including the upcoming Federal Reserve minutes and macroeconomic data releases.
Traders are closely monitoring inflation signals and the Fed’s policy stance, which could dictate near-term direction. A hawkish tone from the central bank may trigger profit-taking, while dovish comments could reignite bullish momentum.
For now, the index remains in a consolidation phase, with a decisive move above 5599.36 needed to confirm a continuation of the rally. Conversely, a break below 5406.38 may signal a shift in sentiment, prompting a correction.
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S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- SPX consolidates near 5521.53, with resistance at 5599.36 limiting further upside.
- A break below 5406.38 could trigger a correction toward 5313.07.
- Market focus remains on Fed policy signals and broader macroeconomic trends.
The S&P 500 (SPX) is trading at 5521.53, holding steady after a strong run, but facing resistance as traders assess macroeconomic conditions.
The index remains above the pivot point at 5510.29, suggesting underlying strength, yet the momentum appears to be losing steam near key resistance at 5599.36. A breakout above this level could fuel further gains toward 5685.55 and 5780.12, reinforcing the longer-term uptrend.
However, downside risks persist, particularly if SPX fails to hold above 5510.29. Immediate support sits at 5406.38, and a break below this level could expose the index to a deeper pullback toward 5313.07 and 5200.68.
The 50-day EMA at 5764.78 remains a critical long-term marker, currently indicating a stretched market that may be due for consolidation or correction.
Investor sentiment remains cautious ahead of key economic events, including the upcoming Federal Reserve minutes and macroeconomic data releases.
Traders are closely monitoring inflation signals and the Fed’s policy stance, which could dictate near-term direction. A hawkish tone from the central bank may trigger profit-taking, while dovish comments could reignite bullish momentum.
For now, the index remains in a consolidation phase, with a decisive move above 5599.36 needed to confirm a continuation of the rally. Conversely, a break below 5406.38 may signal a shift in sentiment, prompting a correction.
S&P 500 - Trade Ideas
Entry Price – Sell Below 5566
Take Profit – 5443
Stop Loss – 5667
Risk to Reward – 1: 1.2
Profit & Loss Per Standard Lot = +$1230/ -$1010
Profit & Loss Per Mini Lot = +$123/ -$101
S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- S&P 500 remains below 5762.50, indicating near-term downside pressure.
- Break below 5680.36 could accelerate selling toward 5616.83 and 5558.78.
- Reclaiming 5762.50 may shift sentiment bullish, with targets at 5861.08 and 5938.02.
The S&P 500 (SPX) is trading at 5738.53, maintaining a cautious stance as investors assess market conditions ahead of key economic data. The index remains below its pivot point at 5762.50, signaling a potential downside bias.
Immediate support is located at 5680.36, with further declines potentially targeting 5616.83 and 5558.78 if selling pressure intensifies.
On the upside, resistance is seen at 5861.08, with a break above this level opening the door for a move toward 5938.02 and 6007.97.
However, the 50-day EMA at 5944.00 suggests that bulls may struggle to reclaim control unless broader market sentiment improves.
The technical outlook remains bearish as long as the index stays below 5762.50, reinforcing the risk of further downside.
A decisive break below 5680.36 could accelerate selling, pushing SPX toward deeper support zones.
Conversely, a move above 5762.50 may shift momentum in favor of buyers, with potential for an upside retracement.
S&P 500 - Trade Ideas
Entry Price – Sell Below 5762
Take Profit – 5679
Stop Loss – 5826
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$830/ -$640
Profit & Loss Per Mini Lot = +$83/ -$64
S&P500 (SPX) Price Analysis – March 07, 2025
Daily Price Outlook
The S&P 500 index faced selling pressure on Friday, dropping to the 5,738 mark after hitting an intra-day low of 5,711. The decline was fueled by investor concerns over US President Donald Trump's shifting trade policies and anticipation of key economic data. Although US stock index futures attempted a modest rebound, market sentiment remained fragile as traders remained cautious.
S&P 500 Under Pressure Due to Trade Policy Uncertainty
On the trade front, Wall Street saw renewed volatility following President Trump's decision to delay the 25% tariff on Canadian and Mexican goods until April 2 as part of the United States-Mexico-Canada Agreement (USMCA).
In response, Canada also postponed its planned tariffs on $125 billion worth of US products. Despite these temporary adjustments, markets remained unsettled due to the unpredictability of global trade policies.
The uncertainty surrounding Trump's tariff strategies has led to concerns over long-term economic growth, with some analysts fearing that these policies could negatively impact corporate earnings. This, combined with ongoing geopolitical tensions, has weighed on investor sentiment, limiting upside potential for the S&P 500.
US Employment Data and Federal Reserve Rate Outlook in Focus
Meanwhile, market participants are keenly awaiting the February employment report, which is expected to show an increase in nonfarm payrolls to 156,000 from January’s 143,000.
The unemployment rate is projected to hold steady at 4.0%, while wage growth is anticipated to slow to 0.3% from the previous 0.5%. Moreover, initial jobless claims fell to 221,000 last week, signaling labor market resilience despite broader economic concerns.
However, reports of rising unemployment claims among federal workers due to layoffs initiated by the Department of Government Efficiency (DOGE), led by Elon Musk, added uncertainty to the labor market outlook. Traders are now focused on Federal Reserve Chair Jerome Powell’s upcoming comments, which could provide further clarity on the central bank’s rate policy stance.
Federal Reserve Rate Cut Speculation Weighs on Market Sentiment
On the US front, concerns about trade policies and possible Federal Reserve rate cuts are affecting market sentiment. Philadelphia Fed President Patrick Harker said the economy is strong but warned about rising consumer stress and inflation risks.
Meanwhile, Atlanta Fed President Raphael Bostic pointed out economic uncertainty and urged caution in making policy decisions.
Fed Governor Christopher Waller said he’s not in favor of a rate cut at the March meeting but noted that cuts could happen later this year if inflation continues to drop.
Markets show little chance of a rate cut in March, and traders are split on whether it will happen in May. However, investors are expecting a rate cut in June, with another one likely in September.
Looking ahead, market participants will closely monitor the upcoming Nonfarm Payrolls (NFP) report, which is expected to reflect the addition of 160,000 jobs in February. Any surprises in employment data could shift expectations regarding Fed policy, influencing the S&P 500’s near-term direction.
S&P 500 – Technical Analysis
The S&P 500 (SPX) is trading at 5738.53, maintaining a cautious stance as investors assess market conditions ahead of key economic data. The index remains below its pivot point at 5762.50, signaling a potential downside bias.
Immediate support is located at 5680.36, with further declines potentially targeting 5616.83 and 5558.78 if selling pressure intensifies.
On the upside, resistance is seen at 5861.08, with a break above this level opening the door for a move toward 5938.02 and 6007.97.
However, the 50-day EMA at 5944.00 suggests that bulls may struggle to reclaim control unless broader market sentiment improves.
The technical outlook remains bearish as long as the index stays below 5762.50, reinforcing the risk of further downside.
A decisive break below 5680.36 could accelerate selling, pushing SPX toward deeper support zones.
Conversely, a move above 5762.50 may shift momentum in favor of buyers, with potential for an upside retracement.
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S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bearish Momentum: S&P 500 remains bearish below the 50 EMA at 6047.19 and the Pivot Point at 5887.91.
- Support Levels: Key supports at 5773.29, 5715.01, and 5663.83.
- Resistance Levels: Immediate resistance at 5962.87, followed by 6043.48 and 6144.23.
S&P 500 is trading at 5861.56, down 0.01%, reflecting cautious market sentiment as it hovers below the Pivot Point at 5887.91. The index faces immediate resistance at 5962.87, followed by stronger barriers at 6043.48 and 6144.23.
These resistance levels coincide with the 50-day Exponential Moving Average (EMA) at 6047.19, signaling continued selling pressure unless the index breaks above this level.
On the downside, immediate support is observed at 5773.29, with further cushions at 5715.01 and 5663.83. A break below 5773.29 could accelerate the bearish trend, pushing the S&P 500 towards lower support zones.
Conversely, a sustained move above 5887.91 could challenge the 5962.87 resistance level, potentially shifting momentum toward the bulls.
The technical setup indicates a bearish bias as long as the S&P 500 trades below the 50 EMA and the Pivot Point. The 4-hour chart shows a descending trendline, reinforcing selling interest. If the price fails to reclaim the 5887.91 level, it is likely to face continued downward pressure.
For now, the recommended strategy is to Sell Below 5887, with a Take Profit at 5774 and a Stop Loss at 5962. Traders should watch for price action around 5887.91, as a break above this level could invalidate the bearish outlook and trigger a short-term recovery.
S&P 500 Price Chart - Source: Tradingview
S&P 500 - Trade Ideas
Entry Price – Sell Below 5887
Take Profit – 5774
Stop Loss – 5962
Risk to Reward – 1: 1.5
Profit & Loss Per Standard Lot = +$1130/ -$750
Profit & Loss Per Mini Lot = +$113/ -$75
S&P500 (SPX) Price Analysis – Feb 28, 2025
Daily Price Outlook
Global market sentiment turned bearish as the S&P 500 tumbled more than 1% on Friday, closing at 5,860 after hitting an intra-day low of 5,858.
The sharp decline was fueled by concerns over corporate earnings, weak economic data, and escalating geopolitical uncertainties.
One of the biggest contributors to the market downturn was NVIDIA (NASDAQ: NVDA), which fell 8.5% to close at $120.15.
Despite reporting strong fourth-quarter earnings that exceeded Wall Street expectations, investors reacted negatively to concerns over narrowing profit margins and rising production costs related to the company’s new Blackwell systems and chips.
Strong US Dollar and Economic Data Weigh on Markets
On the US front, the US Dollar Index (DXY) surged above 107.00 following the release of fourth-quarter GDP data, which showed an annualized growth rate of 2.3%. Although this matched initial estimates and market expectations, it signaled a slowdown from the 3.1% growth seen in Q3.
Meanwhile, Federal Reserve Bank of Atlanta President Raphael Bostic reiterated that the Fed should maintain its current interest rate policy to keep inflation under control. This stance dampened hopes for an imminent rate cut, adding pressure to equity markets.
Meanwhile, the latest labor market data showed a significant increase in initial jobless claims for the week ending February 22, attributed to corporate layoffs and severe winter weather.
Furthermore, recent services PMI and Michigan consumer sentiment data suggested the economy might be slowing, reinforcing expectations that the Fed could cut interest rates in 2025, though no immediate changes are expected.
Therefore, the S&P 500 faced downward pressure as a strong US Dollar, hawkish Fed stance, and slowing economic indicators fueled investor concerns, reducing hopes for near-term rate cuts and weighing on equities.
Global Trade Tensions Rise Amid New Tariffs and Economic Measures
Apart from this, US President Donald Trump announced a series of new tariffs, including a 25% tariff on Mexican and Canadian goods and an additional 10% duty on Chinese imports. This move heightened concerns about global trade tensions.
Meanwhile, the White House issued an executive order aimed at cutting government costs, further influencing market sentiment.
In addition, the People’s Bank of China (PBOC) injected CNY300 billion into the economy, maintaining interest rates at 2% to support economic stability. However, these measures did little to ease investor concerns over slowing global growth.
Moving ahead, the market participants now turn their attention to the upcoming Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge.
S&P 500 – Technical Analysis
S&P 500 is trading at 5861.56, down 0.01%, reflecting cautious market sentiment as it hovers below the Pivot Point at 5887.91. The index faces immediate resistance at 5962.87, followed by stronger barriers at 6043.48 and 6144.23.
These resistance levels coincide with the 50-day Exponential Moving Average (EMA) at 6047.19, signaling continued selling pressure unless the index breaks above this level.
On the downside, immediate support is observed at 5773.29, with further cushions at 5715.01 and 5663.83. A break below 5773.29 could accelerate the bearish trend, pushing the S&P 500 towards lower support zones.
Conversely, a sustained move above 5887.91 could challenge the 5962.87 resistance level, potentially shifting momentum toward the bulls.
The technical setup indicates a bearish bias as long as the S&P 500 trades below the 50 EMA and the Pivot Point. The 4-hour chart shows a descending trendline, reinforcing selling interest. If the price fails to reclaim the 5887.91 level, it is likely to face continued downward pressure.
For now, the recommended strategy is to Sell Below 5887, with a Take Profit at 5774 and a Stop Loss at 5962. Traders should watch for price action around 5887.91, as a break above this level could invalidate the bearish outlook and trigger a short-term recovery.
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S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bullish Momentum Above Pivot: S&P 500 remains bullish above $6,093.87, with resistance at $6,128.99 and $6,171.70 in focus.
- Bearish Risk Below Support: A break below $6,093.87 could lead to support tests at $6,049.53 and $6,008.89.
- Strategic Entry Point: Buy above $6,094, with a take profit at $6,172 and a stop loss at $6,049 for effective risk management.
The S&P 500 (SPX) is trading at $6,117.51, slightly down by 0.01%, reflecting a cautious market sentiment. Despite the minor decline, the index remains above the key pivot point at $6,093.87, maintaining a bullish outlook as long as it holds above this level.
The pivot point is a crucial support zone, bolstered by the 50-Day Exponential Moving Average (EMA) at $6,057.00, which is providing dynamic support.
If the S&P 500 continues to trade above the pivot point, it is likely to target the immediate resistance at $6,128.99.
Breaking above this resistance could fuel further bullish momentum towards the next resistance levels at $6,171.70 and $6,219.27. These levels are significant as they mark potential breakout zones that could lead to new highs.
On the flip side, if the index falls below the pivot point at $6,093.87, it could encounter selling pressure, pushing it down to the immediate support at $6,049.53.
A break below this level would expose the next support zones at $6,008.89 and $5,969.55. These supports are critical in preventing a deeper correction and maintaining the long-term bullish trend.
From a strategic perspective, the recommended entry point is to buy above $6,094, targeting a take profit at $6,172 while setting a stop loss at $6,049 to manage downside risk. This approach aligns with the bullish sentiment supported by the upward trendline and the 50 EMA.
S&P 500 - Trade Ideas
Entry Price – Buy Above 6094
Take Profit – 6172
Stop Loss – 6049
Risk to Reward – 1: 1.7
Profit & Loss Per Standard Lot = +$780/ -$450
Profit & Loss Per Mini Lot = +$78/ -$45
S&P500 (SPX) Price Analysis – Feb 21, 2025
Daily Price Outlook
During the latest trading session, the S&P 500 (SPX) Index struggled to halt its bearish trend, remaining under pressure around the 6,117 level and hitting an intra-day low of 6,084. The downward momentum was driven by cautious investor sentiment amid economic uncertainties and shifting Federal Reserve expectations.
Stronger US Dollar and Fed’s Cautious Stance Keep S&P 500 Under Pressure
On the US front, the broad-based US Dollar remained strong, with the Dollar Index (DXY) hovering around 106.50, despite higher-than-expected jobless claims rising to 219,000.
However, weak economic data usually pressures a currency, the USD gained support as investors sought safety amid uncertainty. Moreover, Federal Reserve officials maintained a cautious stance on inflation, signaling that interest rates may stay higher for longer, which further boosted the greenback.
St. Louis Fed President Alberto Musalem also raised concerns about stagflation risks, while Atlanta Fed President Raphael Bostic suggested that rate cuts remain possible this year, depending on upcoming economic data.
Meanwhile, the recent FOMC meeting minutes revealed the Fed's cautious approach, reinforcing expectations that interest rate reductions may be delayed. As a result, the S&P 500 faced selling pressure, as higher interest rate concerns dampened investor sentiment.
Impact of S&P Global PMI Data on the US Dollar and Equities
Moving ahead, the latest S&P Global PMI data for February played a crucial role in market movements. Investors closely watched the preliminary US Manufacturing and Services PMIs, which offered insights into economic activity.
The Manufacturing PMI was expected to edge higher from 51.2 to 51.5, while the Services PMI was anticipated to rise from 52.9 to 53.0.
However, the stronger-than-expected services sector performance could provide some support to the US Dollar, adding pressure on equities, including the S&P 500. However, if the Services PMI unexpectedly dips below 50, signaling economic contraction, the market could witness a shift in sentiment.
Apart from this, concerns about rising input costs in the service sector and a resilient labor market could reinforce expectations of a “higher for longer” Federal Reserve stance, further limiting the upside for stocks.
Geopolitical Tensions and Trade Uncertainty Weigh on Market Sentiment
Apart from economic data, geopolitical factors also played a role in the S&P 500’s decline. The global trade environment remains uncertain, with potential tariff policies adding pressure on financial markets.
Former US President Donald Trump confirmed a 25% tariff on pharmaceutical and semiconductor imports starting in April, alongside continued auto tariffs. These developments fueled concerns about trade tensions, leading to increased market volatility.
Despite the ongoing pressure, traders are closely monitoring upcoming economic releases and central bank commentary for further direction. If US economic indicators continue to show resilience, the S&P 500 may struggle to recover in the near term.
However, any signs of easing inflationary pressures or a shift in Fed policy expectations could provide temporary relief to the index.
S&P 500 – Technical Analysis
The S&P 500 (SPX) is trading at $6,117.51, slightly down by 0.01%, reflecting a cautious market sentiment. Despite the minor decline, the index remains above the key pivot point at $6,093.87, maintaining a bullish outlook as long as it holds above this level.
The pivot point is a crucial support zone, bolstered by the 50-Day Exponential Moving Average (EMA) at $6,057.00, which is providing dynamic support.
If the S&P 500 continues to trade above the pivot point, it is likely to target the immediate resistance at $6,128.99.
Breaking above this resistance could fuel further bullish momentum towards the next resistance levels at $6,171.70 and $6,219.27. These levels are significant as they mark potential breakout zones that could lead to new highs.
On the flip side, if the index falls below the pivot point at $6,093.87, it could encounter selling pressure, pushing it down to the immediate support at $6,049.53.
A break below this level would expose the next support zones at $6,008.89 and $5,969.55. These supports are critical in preventing a deeper correction and maintaining the long-term bullish trend.
From a strategic perspective, the recommended entry point is to buy above $6,094, targeting a take profit at $6,172 while setting a stop loss at $6,049 to manage downside risk. This approach aligns with the bullish sentiment supported by the upward trendline and the 50 EMA.
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S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Key Resistance: 6128; Breakout may push toward 6171.
- Key Support: 6049; Decline below could accelerate selling.
- Outlook: Bullish above 6094, with a target at 6163.
The S&P 500 (SPX) is trading at 6115.08, up 0.01%, as the index continues to hover near record highs despite mixed economic signals.
The benchmark remains supported above its pivot point of 6093.87, indicating a positive underlying trend.
From a technical perspective, the index maintains its position above the 50-day EMA at 6054.58, suggesting sustained bullish sentiment. Immediate resistance is seen at 6128.99, with a potential move toward 6171.70 if the index breaks through.
A successful climb beyond this level could open the path toward 6219.27, marking a new high for the year.
On the downside, immediate support rests at 6049.53, with subsequent levels at 6008.89 and 5969.55. A drop below the 6049 mark may trigger profit-taking and shift sentiment toward the bearish side.
The Relative Strength Index (RSI) indicates neutral territory, suggesting room for further gains if buying pressure intensifies.
Fundamental factors also contribute to the cautious optimism, with strong corporate earnings providing support despite concerns about inflation and potential interest rate adjustments.
Recent PPI data showed a modest uptick, reinforcing the Fed’s cautious stance on rate cuts, which investors are closely monitoring.
S&P 500 - Trade Ideas
Entry Price – Buy Above 6094
Take Profit – 6163
Stop Loss – 6049
Risk to Reward – 1:1.5
Profit & Loss Per Standard Lot = +$690/ -$450
Profit & Loss Per Mini Lot = +$69/ -$45
S&P500 (SPX) Price Analysis – Feb 14, 2025
Daily Price Outlook
S&P 500 (SPX) Index maintained its bullish trend and surged past the 6,116 level in intraday trading, marking an increase of over 1% as investor sentiment improved.
However, the rally was largely driven by US President Donald Trump's decision to postpone the implementation of reciprocal tariffs, alleviating some trade war concerns.
Global markets remained strong, with European indexes set for their eighth consecutive weekly gain. Trump's announcement to hold off on imposing new tariffs suggested a willingness to negotiate, which helped fuel optimism among investors.
However, uncertainty remains as previous tariffs on Mexico, Canada, and China continue to impact global trade.
S&P 500 Gains Momentum as US Dollar Weakens and Inflation Remains Sticky
On the other hand, the broad-based US dollar weakened, with the Dollar Index (DXY) dropping to 107.50. This decline came as progress in Russia-Ukraine peace talks boosted investor confidence, reducing demand for the safe-haven dollar.
Hence, the weaker dollar typically benefits stocks, and this shift in sentiment helped the S&P 500 gain traction. Investors turned their focus to riskier assets, pushing equities higher as optimism about geopolitical stability improved.
Meanwhile, fresh inflation data from the US showed that price pressures remain strong. The Producer Price Index (PPI) rose by 3.5% in January, exceeding expectations of 3.2%, while core PPI, which excludes food and energy, climbed to 3.6%. These figures indicate that inflation is still sticky, raising concerns that the Federal Reserve may delay its expected interest rate cuts.
Despite these inflation concerns, the S&P 500 continued its upward movement, supported by strong corporate earnings and improved risk appetite. Investors remain hopeful that economic growth and easing geopolitical tensions will sustain the stock market's positive momentum.
Investor Focus on US Retail Sales Data
Moving ahead, investors are keeping an eye on the upcoming US Retail Sales data, which could impact market trends. If sales are strong, it may boost confidence in the economy and support stock market gains. On the other hand, weaker data could raise expectations that the Federal Reserve might cut interest rates sooner.
S&P 500 – Technical Analysis
The S&P 500 (SPX) is trading at 6115.08, up 0.01%, as the index continues to hover near record highs despite mixed economic signals.
The benchmark remains supported above its pivot point of 6093.87, indicating a positive underlying trend.
From a technical perspective, the index maintains its position above the 50-day EMA at 6054.58, suggesting sustained bullish sentiment. Immediate resistance is seen at 6128.99, with a potential move toward 6171.70 if the index breaks through.
A successful climb beyond this level could open the path toward 6219.27, marking a new high for the year.
On the downside, immediate support rests at 6049.53, with subsequent levels at 6008.89 and 5969.55. A drop below the 6049 mark may trigger profit-taking and shift sentiment toward the bearish side.
The Relative Strength Index (RSI) indicates neutral territory, suggesting room for further gains if buying pressure intensifies.
Fundamental factors also contribute to the cautious optimism, with strong corporate earnings providing support despite concerns about inflation and potential interest rate adjustments.
Recent PPI data showed a modest uptick, reinforcing the Fed’s cautious stance on rate cuts, which investors are closely monitoring.
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