S&P 500 Consumer sentiment extends gains. Risks remain. A well-known indicator of consumer sentiment in the United States continued to improve in February. Climbing for the fourth straight month and reaching its highest level as of Jan 2022,

S&P 500 FRIENDLY KEY POINTS FOR CONSUMER SENTIMENT

• Consumer confidence in February increased to 66.4 from 64.9 earlier. Exceeding market estimates of 65.00.
• The increase in confidence levels implies that Americans are more upbeat about the future of the economy. Which is encouraging for household spending.
• The survey also shows that one-year inflation forecasts are now 4.2%, while the five-year figure is still 3.9%.

According to preliminary data from the University of Michigan, the consumer confidence index increased marginally from 64.9 to 66.4, slightly beating expectations for such an increase to 65.00.

According to preliminary data from the University of Michigan, the consumer confidence index increased marginally from 64.9 to 66.4, slightly outperforming for such an increase to 65.00.

American families were greatly concerned about the rising cost of living for the majority of 2022. Though, decreasing inflationary pressure are bringing some relief by raising real earnings. Or, at the very least by halting additional declines in buying power.

In today’s data, the present economic circumstances index increased from 68.4 at the beginning of the year to 72.6. Whereas the prospects indicator decreased slightly from 62.7 to 62.3. Interestingly, one-year inflation. Predictions reversed course and increased to 4.2% from 3.9%, while the five-year measure stayed the same at 2.9 percent.

Source: TradingEconomics

S&P 500 Instant Reaction following Consumer Sentiment Data

The S&P 500 whirled in search of direction immediately after the poll results hit the news, but finally was able to recoup the session’s early morning declines and climb into growth mode, if modestly.

The elevated confidence readings are encouraging for future spending, which is the primary engine of U.S. GDP,. They indicate that household consumption may stay steady in the months to come. This would be a positive outcome for corporate earnings since it might keep the economy afloat and stop a recession.

Further Risks for Wall Street

On the other hand, persistent inflation expectations and growing market may force the Fed to elevate borrowing costs even more at subsequent FOMC meetings.

On the other hand, persistent inflation expectations and growing market may force the Fed to elevate borrowing costs. Even, more at subsequent FOMC meetings. This scenario might cause risk assets to decline, thereby stopping the Wall Street surge in 2023.

S&P 500 5 Minute Graphical Representation

Source: TradingView

S&P resumes its upward trend.

The S&P index is trading slightly higher after erasing early dips. At 4086.68, the index is clearly up five points, or 0.13 percent The highest cost was 4090.58. Remember that in Dec, the swing peaks were 4100.51 and 4100.96.

We’ll be looking for any short-term optimistic cues at those ranges. It would be better for the index if we could reach and maintain that range.

Technical Review for S&P 500

The S&P index’s price fell yesterday and once more today. Crossing below its 100 hour moving average on the way to the session low of 4060.79. The result of the 100-hour moving average is 4077.71. Investors are attempting to propel the price upward and, maybe, a revisit of the 4100 region now that it is back above that moving average.