- The S&P 500 stock index falls 2.28% daily, quoting when writing in 5,271.
- The United States retail sales rise 1.4% in March, improving market expectations.
- The president of the Federal Reserve, Jerome Powell, highlighted in his speech today that the major tariffs of the expected probably mean greater inflation and less economic growth.
The S&P 500 established a maximum of the day in 5,388, finding aggressive vendors that dragged the index to a minimum of April 10 in 5,218. At the moment, the S&P 500 operates over 5,271, losing 2.28% today.
The S&P 500 extends its losses after Jerome Powell’s statements
According to information presented by the United States Census Office, retail sales increased 1.4% in March, exceeding 1.3% projections. This figure is above 0.2% observed in February.
On the other hand, US industrial production contracted 0.3% in March, worsening the projections of a 0.2% decrease. These results are after the registered growth of 0.8% the previous month.
The president of the Federal Reserve, Jerome Powell, said in his speech today that the United States economy is solid, despite the high uncertainty. In the same way, he acknowledged that the tariffs of expected probably mean greater inflation and less economic growth.
The attention of investors will now be placed in the manufacturing index of the Fed of Philadelphia, in the weekly requests for unemployment subsidy and in the speech of Michael Barr, a member of the Federal Reserve.
Levels to be considered in the S&P 500
The S&P 500 reacted the decline from a short -term resistance given by the maximum of April 9 in 5,479 in convergence with the 50% fibonacci decline. The next key resistance is in 6,145 maximum of February 19. Down, the important support is observed in 4810, pivot point of April 7.
S&P 500 DAILY GRAPH
S&P 500 FAQS
The S&P 500 is a very often stock index that measures the yield of 500 public companies and is considered a wide measure of the US stock market. The influence of each company on the calculation of the index is weighted based on stock capitalization. This is calculated by multiplying the number of bought shares of the company for the price of the action. The S&P 500 index has achieved impressive yields: 1.00 $ invested in 1970 would have produced a yield of almost $ 192.00 in 2022. The average annual profitability since its creation in 1957 has been 11.9%.
Companies are selected by Committee, unlike other indices that are included based on established standards. Even so, they must fulfill certain eligibility criteria, the most important of which is stock market, which must be equal to or greater than 12.7 billion dollars. Other criteria are liquidity, domicile, stock capitalization, sector, financial viability, quotation time and representation of the sectors of the United States economy. The nine largest companies in the index represent 27.8% of the stock market capitalization.
There are several ways to operate with the S&P 500. Most of the Stred Betting retail runners and platforms allow operators to use contracts per difference (CFD) to make bets on the price direction. In addition, indexed funds, investment funds and quoted funds (ETF) that follow the price of the S&P 500 can be purchased. The most ETF liquid is the ETF of the London Stock Exchange. The most ETF liquid is the State Street Corporation Spy. The Chicago Mercantile Exchange (CME) offers futures contracts on the index and the Chicago Board of Options (CMOE) offers options, as well as ETF, ETF Inverse and ETF leverage.
There are many factors that promote S&P 500, but mainly it is the aggregate performance of the companies that compose it, revealed in their reports of quarterly and annual results. American and world macroeconomic data also contribute, since they influence investors’ confidence, which is positive drives profits. The level of interest rates, set by the Federal Reserve (FED), also influences the S&P 500, since it affects the cost of credit, which is largely depending on many companies. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
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.
