- The S&P 500 gains 1.00% at the beginning of the day.
- US retail sales rise 1% in July vs. consensus of 0.3%.
- Unemployment claims stood at 227,000, lower than the 235,000 expected by analysts.
- St. Louis Fed President Alberto Musalem hints at tightening monetary policy.
The S&P 500 set a daily low at 5,446, attracting buyers who pushed the index to two-week highs not seen since August 1 at 5,511. The S&P 500 is currently trading at 5,501, up 1.00% on the day.
Retail sales beat expectations, boosting major stock indices
According to data from the U.S. Census Bureau, retail sales rose 1.00% to $709.7 billion, exceeding the 0.3% expected.
In the same vein, weekly jobless claims fell below the projected 235,000, reaching 227,000 in the week ending August 10.
On the other hand, St. Louis Federal Reserve President Alberto Musalem stated in his speech today that inflation appears to be on a consistent path toward the 2% target, so the time for an adjustment could be near.
Levels to consider in the S&P 500
The S&P 500 established a key support at 5,090, the low of August 5. The first resistance is seen at 5,561, close to the 78.6% Fibonacci retracement. The next key resistance is at 5,667, given by the high of July 16. The Relative Strength Index shows buying pressure consistent with the bullish streak of the last few sessions, projecting a target level of 5,600 in the short term.
S&P 500 daily chart
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.
