• S&P 500 closes down at 4450.32, losing 1.22%, as Technology, Consumer Discretionary, and Energy sectors led the decline.
  • Upbeat US economic data, including a rise in the Empire State Manufacturing Index, fuels optimism that the Fed may achieve a soft landing.
  • US 10-year Treasury yields climb to 4.334%, adding to market jitters, while WTI oil prices rise by 0.56% due to tight supplies.

Wall Street finished the week on a lower note, as a pile of expiring options and an index rebalance sparked volatility in the US equity markets after printing weekly highs during the last two trading days. This, alongside upbeat US economic data and a jump in US Treasury bond yields, turned sentiment sour.

S&P 500 loses 1.22% as expiring options and index rebalance add volatility, despite optimism about a Fed’s soft landing

The S&P 500 registered solid losses of 1.22%, down at 4450.32, while the heavy-tech Nasdaq 100 erased 1.56% of its hard-earned gains, ending at 13,813.59. At the same time, the Dow Jones Industrial Average fell 0.83% and finished the session at 34,618.24

Sector-wise, the biggest losers were Technology, Consumer Discretionary, and Energy, each losing 1.95%, 1.88%, and 1.32%. The least damaged were Utilities, Real Estate, and Industrials, erasing from its value 0.49%, 0.51%, and 0.53%, respectively.

US economic data revealed on Friday echoed an upbeat tone amongst investors, who are optimistic the Federal Reserve would achieve a soft landing. The University of Michigan showed that despite consumer sentiment deteriorating, Americans see a ray of light regarding lower prices. According to the UoM survey, inflation expectations lowered to 3.1% in September for one year and 2.7% for a 5-year horizon.

The New York Fed released its Empire State Manufacturing Index, which rose sharply, crushing last month’s figures and the consensus. At the same time, the Federal Reserve announced that Industrial Production in August expanded by 0.4%, above forecasts but trailed July’s data.

Today’s data, summed up with the previous one revealed in the week, raised speculation the Fed might achieve a soft landing. In the meantime, money market futures remain certain the Fed would skip hiking rates next week when the US central bank meets in Washington, in the only meeting in Q3.

US Treasury bond yields finished the session with the 10-year benchmark note rate at 4.334%, gained 0. 98%. The Greenback, as shown by the US Dollar Index, ended positively, climbing 0.01%, at 105.33..

WTI rose by 0.56% daily in the commodity space underpinned by tight supplies after Saudi Arabia and Russia’s 1.3 million barrel crude oil cut.

S&P 500 Price Action – Daily Chart

S&P 500 Technical Levels

SP 500

Overview
Today last price 4448.33
Today Daily Change -54.93
Today Daily Change % -1.22
Today daily open 4503.26
 
Trends
Daily SMA20 4456.5
Daily SMA50 4482.68
Daily SMA100 4370.87
Daily SMA200 4185.62
 
Levels
Previous Daily High 4510.13
Previous Daily Low 4471.71
Previous Weekly High 4524.32
Previous Weekly Low 4429.15
Previous Monthly High 4590.64
Previous Monthly Low 4337.34
Daily Fibonacci 38.2% 4495.45
Daily Fibonacci 61.8% 4486.39
Daily Pivot Point S1 4479.94
Daily Pivot Point S2 4456.61
Daily Pivot Point S3 4441.52
Daily Pivot Point R1 4518.36
Daily Pivot Point R2 4533.45
Daily Pivot Point R3 4556.78

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD stabilizes above 1.0900 ahead of Powell speech

EUR/USD stabilizes above 1.0900 ahead of Powell speech

EUR/USD fluctuates slightly above 1.0900 after erasing the bearish opening gap. The positive opening in Wall Street makes it difficult for the US Dollar to gather strength and helps the pair hold its ground ahead of Fed Chairman Powell's speech at the Economic Club of Washington.

EUR/USD News

GBP/USD struggles to clear 1.3000, eyes on Fed Chairman Powell

GBP/USD struggles to clear 1.3000, eyes on Fed Chairman Powell

GBP/USD finds it difficult to build on the previous week's gains and trades below 1.3000 on Monday. Investors refrain from taking large positions ahead of Fed Chairman Powell's speech and allow the pair to stay in its daily range.

GBP/USD News

Gold climbs above $2,420 following earlier decline

Gold climbs above $2,420 following earlier decline

Gold regains its traction and trades in positive territory slightly above $2,420 after dropping toward $2,400 at the beginning of the week. Investors await Fed Chairman Powell's appearance at the Economic Club of Washington.

Gold News

Crypto Today: Bitcoin, Ethereum and XRP what to expect as SEC executive says Howey test applies to cryptos

Crypto Today: Bitcoin, Ethereum and XRP what to expect as SEC executive says Howey test applies to cryptos

Bitcoin trades above $62,500 on Monday, sustains above key support as head of US SEC enforcement division says Howey test applies to cryptos. Ethereum and XRP trade above key support, extending gains by nearly 3% on the day. 

Read more

Five fundamentals for the week: Markets set to move on Trump fallout, ECB, US Retail Sales, more Premium

Five fundamentals for the week: Markets set to move on Trump fallout, ECB, US Retail Sales, more

"Donald Trump was shot" – the shocking reports from Pennsylvania reverberated across markets and will likely continue doing so. Investors will also watch for further signs of slowdown and European defiance. Here are the three key events to watch.

Read more

Forex MAJORS

Cryptocurrencies

Signatures