S&P 500 looking for recovery bounce from days lows near $4,323
|- S&P 500 sharply lower for Thursday after US CPI inflation reading sends investor confidence lower.
- Safe havens are catching a bid and equities stumbled as investors fear the Fed.
- S&P 500 sees peak-to-trough decline of 1.65% on inflation expectations adjustment.
The Standard & Poor's 500 equity index saw a sharp downstep on Thursday after US Consumer Price Index (CPI) inflation figures beat market expectations, with the annualized CPI for September printing at 3.7%, holding steady with the previous reading and snubbing the market's forecast decline to 3.6%.
US CPI inflation holds steady at 3.7% in September vs. 3.6% forecast
The data move was minor, but enough to reignite fears of the Federal Reserve's (Fed) higher-for-longer policy stance on interest rates, with sticky inflation in the US set to push out expectations of an eagerly-anticipated rate cut from the US central bank even further into the future.
Markets are currently pricing in an eventual half-point rate cut sometime in 2024, but if inflation continues to edge higher against forecasts, it could see the Fed's dot plot continue to shift further out.
S&P 500 Technical Outlook
Intraday action as the S&P 500 down past the 50-hour Simple Moving Average (SMA) as Thursday's risk-off plunge sends the major equity index down below the near-term median, but stocks are seeing some mild bidding in a rebound as the S&P recovers to $4,350.
The S&P 500 is still in the green for the trading week, trading up nearly 1.2% from Monday's early opening bids near $4,300.
The S&P 500 has formed a bearish engulfing candle on the daily timeframe, and the equity ticker is set for a continuation of a bearish turnaround from the 50-day SMA at $4,406. The S&P 500 caught a bullish bounce last week from the 200-day SMA near $4,220.
The index still remains on the low end in the medium term and could see Thursday's backslide firming up an extension into a lower-high pattern.
S&P 500 Hourly Chart
S&P 500 Daily Chart
S&P 500 Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.