S&P 500 falls to five-month lows at $4,230 as US Treasuries hit new highs since 2007

• US stocks turned bearish again, driven lower by risk appetite.
• US Treasury yields hit their highest level in 17 years as investors flock to safe haven assets.
• With Tuesday’s declines, markets are fully entering bear market territory.

The Standard & Poor’s Stock Index (S&P 500) closed down 1.37% on Tuesday, settling below $4,230 and extending its recent losses, as investors continue to be pushed out of the risk appetite zone. .

The S&P is recording its lowest prices in five monthsand the Dow Jones Industrial Average (DJIA) had its worst trading day since August, with a drop of 430 points, to close with a decrease of 1.3%, at $33,002.38.

The Nasdaq Composite Index was the biggest loser of the US session, falling 1.87% to close at $13,059.47, losing more than 248 points on the day.

US economic data continues to beat expectations, and US employment figures point to continued underlying strength in the US economy, raising fears that the Federal Reserve (Fed) will have to raise rates further. interest rates for the future.

The yield on the 10-year US Treasury bond reached 4.8% on Tuesday, and the 30-year Treasury yield reached 4.925%. Both are at their highest performance levels since 2007.

S&P 500 Technical Outlook

The S&P 500 is about to crash into the 200-day SMA, currently parked just below Tuesday’s low bids, and the 34-day EMA has turned bearish from $4,400, trapping any bullish bounce under technical resistance. .

The S&P is down nearly 6.5% from the last high near $4,520 and remains 8.16% below the year’s high of $4,607.

A bearish continuation will clear the path towards $4,000 for the S&P 500, while a bullish bounce will need to reclaim territory towards $4,500 before an uptrend can be reestablished on the charts.

S&P 500 daily chart

S&P 500 Technical Levels