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S&P 500 falls towards the 50-DMA as Walmart slashes earnings forecast

  • The three major US equity indices plunge between 0.44% and 1.79%.
  • Sentiment shifted after Walmart blamed “high inflation” as it rips its profit outlook for the second half of 2022.
  • The US Dollar Index rises above 107.000, while the US 10-year T-note yield is flat at around 2.79%.

US equities slumped after jumping from YTD low levels, but a dampened market sentiment, alongside July’s Federal Reserve monetary policy decision looming, kept investors uneasy on Tuesday.

At the time of writing, the S&P 500 sits at 3,920.79, falling 1.16%, while the tech-heavy Nasdaq slumps by 1.79%, at 11,572.09, and the Dow Jones Industrial average slides 0.44% to 31,850.33

Sector-wise,  the leading sectors are Health, up by 1.02%, followed by Utilities and Real Estate, each recording gains of 0.64 % and 0.25%, respectively. The biggest losers were Consumer Discretionary, Communication Services, and Technology, plummeting 3.09%, 1.88%, and 1.36% each.

Shares fell due to Walmart cutting its earnings forecast, complaining about double-digit food prices and elevated energy prices. Additionally, the US Federal Reserve monetary policy decision is looming, and Europe’s escalating energy crisis re-ignited recession fears amongst traders, which turned to safe-haven assets, namely the greenback.

The US Dollar Index (DXY), a measurement of the greenback’s value against some currencies, rallies 0.62% to 107.132, while the 10-year US Treasury yield is almost flat, yielding 2.792%.

in the commodities complex, WTI drops 1.13%, exchanging hands at $95.60 BPD. Meanwhile, precious metals like gold (XAU/USD) drop 0.11%, trading at $1717.15 a troy ounce.

SP 500 Chart

Key Technical Levels

SP 500

Overview
Today last price3920.79
Today Daily Change-40.74
Today Daily Change %-1.16
Today daily open3964.92
 
Trends
Daily SMA203865
Daily SMA503913.44
Daily SMA1004120.31
Daily SMA2004347.55
 
Levels
Previous Daily High3984.36
Previous Daily Low3942.26
Previous Weekly High4011.65
Previous Weekly Low3817.67
Previous Monthly High4181.86
Previous Monthly Low3636.65
Daily Fibonacci 38.2%3968.28
Daily Fibonacci 61.8%3958.34
Daily Pivot Point S13943.33
Daily Pivot Point S23921.75
Daily Pivot Point S33901.23
Daily Pivot Point R13985.43
Daily Pivot Point R24005.95
Daily Pivot Point R34027.53

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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