S&P 500 News: Prior to the FOMC conference, stocks steadied. Since the US debt ceiling issue has been resolved, index is unclear of its next step.
S&P500 Key Considerations
Last Saturday, President Joe Biden gave his signature to a measure raising the debt ceiling.
On Monday, Apple unveiled a VR headset, but the AAPL stock fell.
Previous Friday’s May jobs data indicates a decreased likelihood of a June Fed rate rise.
This week, Stitch Fix, DocuSign, and Nio each announce earnings.
The S&P 500 is nearly at so far peaks as dovish Fed predictions support the equity market.
S&P 500 is Clueless on the next direction
presently the US debt limit dispute has been resolved, the S&P 500 index seems unclear of its next course of action. Investors ought to feel more at rest since. A political-driven US debt default appears out of the question after President formally signed the agreement.
The Fed is less certain to raise interest rates on June 14 as a result of last Friday’s jobs data. The markets have their sights on the following Wednesday. Even if the Fed verdict is scheduled for next week due to the absence of significant data this week.
While the stock gaining ground ahead of the announcement, Apple’s (AAPL) much-anticipated launch of the company’s virtual reality headset on Monday. It hit the index as the index’s largest component dropped 0.8%. While some were impressed with the technology, the majority of the critique focused on the $3,499 cost for the Apple Vision Pro. The opening session of Tuesday saw further 1% decline in the price of Apple shares.
CME FedWatch Tool is supportive of positive S&P 500
Only a week ago, the CME FedWatch Tool predicted a 66% likelihood of a 25-bp increase. The barometer is now at 25%. According to the market, increases may come to a stop during the month. Which is obviously positive for the Index. -The observers may not, however, believe that the Fed will soon decrease interest rates. Friday witnessed a sharp increase in the market, but Monday’s reaction was less positive as the S&P 500 dropped 0.2 percent.
Earnings for the week
Tuesday, June 6 – J. M. Smucker (SJM), Stitch Fix (SFIX)
On Wednesday, June 7th – Campbell Soup (CPB), GameStop (GME)
8th of June – DocuSign (DOCU)
Nio (NIO), which is on 9th June
S&P 500 prediction
Due to the Fed rate decision coming up a week from now. The S&P 500 may simply be consolidating a little bit this week. The index has already increased by 12 percent for the year so far. And the it gained 1.83% last week as a result of the conclusion of a debt-ceiling deal. It appears that traders are now searching for advice.
Technical Perspective and Projection
The S&P 500 bulls are certain to hold up until they are able to sell close to the 4,325 level. Which maintains the index’s top since August 2022, as it is now decisively over the 4,200 barrier at 4,273 as of Monday’s closing. In the meanwhile, bulls ought to locate support at the 4,200 mark. And the surrounding 9-day MA till they can hit their peak from last August. The RSi has risen beyond the midpoint but has not yet reached overbought levels. This indicates that there is probably additional space to expand.
