- The S&P 500 lost 1.73%, reaching lows not seen since August 13.
- Nonfarm payrolls rise by 142,000 in August, below market estimates.
- Christopher Waller, a member of the Fed’s Board of Governors, rules out the possibility that the US economy is in recession.
The S&P 500 hit a session high of 5,520 as aggressive sellers pushed the index to a daily low of 5,402. The S&P 500 is currently trading at 5,405, down 1.73% today.
Nonfarm payrolls disappoint, drag S&P 500 to 3-1/2-week lows
According to data from the US Bureau of Labor Statistics (BLS), nonfarm payrolls rose by 142,000 in August, falling short of the consensus expectation of 160,000 and rising above the 89,000 recorded in July. Following this result, the SP 500 signed its second consecutive session on the decline, losing 1.73% today, reaching lows not seen since August 13.
On the other hand, Christopher Waller, member of the Board of Governors of the Federal Reserve, stressed that the time has come to begin reducing the interest rate at the next meeting. He also ruled out the possibility that the economy is in recession, although the data of the last few days indicate that the labor market is weakening. He reiterated that the monetary authority will be closely monitoring the employment data.
Levels to consider in the S&P 500
The S&P 500 formed a short-term resistance at 5,654, given the high of September 2. The closest support is seen at 5,293, the low of August 9, in convergence with the 50% Fibonacci retracement. The next key support level is at 5,090, the pivot point of August 5. The Relative Strength Index is at 39.77, below the midline of 50, confirming the strength of the selling pressure with intentions to reach the key support area near 5,300.
S&P daily chart 500
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
