S&P 500 plunges more than 1% as Jackson Hole kicks off

The SPX erased all of Wednesday’s gains, retreating to 4,380.
Thomas Barkin and Susan Collins sounded hawkish at the start of the Jackson Hole Symposium.
All eyes are now on Friday’s speech by Jerome Powell.

Patricio Martín FXStreet

On Thursday, the US stock market saw losses driven by a stronger USD, boosted amid hawkish remarks by Federal Reserve (Fed) officials at the Jackson Hole Symposium.

Thomas Barkin stated that the Fed will keep rates where they are for the rest of 2023 and push rate cuts to 2024. In addition, Susan Collins commented that “more rate hikes are possible” which made markets place bets on a more aggressive Fed. In line with that, US yield rose, making stocks lose interest. The 2-year rate rose to 5%, while the 5 and 10-year rates increased to 4.44% and 4.23%, respectively.

Eventually, it will come down to the next set of data that the Fed will receive, including an additional jobs report and inflation reading. Powell’s words on Wednesday will also be closely watched for investors to model their expectations.

SPX Levels to watch

The daily chart suggests that the SPX displays a neutral to bearish outlook. The Relative Strength Index (RSI) points south in negative territory, while the Moving Average Convergence Divergence (MACD) prints red bars. However, the index remains above the 100 and 200-day Simple Moving Averages (SMAs), indicating that the bull retains control of the bigger picture.

Support Levels to watch: 4,350, 4,330, 4,310 (100-day SMA).

Resistance Levels to watch: 4,400, 4,460 (20-day SMA), 4,480.

SPX Daily chart

SP 500

Overview
Today last price	4374.53
Today Daily Change	-60.86
Today Daily Change %	-1.37
Today daily open	4435.39

Trends
Daily SMA20	4473.59
Daily SMA50	4459.8
Daily SMA100	4314.22
Daily SMA200	4147.57

Levels
Previous Daily High	4441.51
Previous Daily Low	4387.71
Previous Weekly High	4498.48
Previous Weekly Low	4337.34
Previous Monthly High	4607.11
Previous Monthly Low	4375.8
Daily Fibonacci 38.2%	4420.96
Daily Fibonacci 61.8%	4408.26
Daily Pivot Point S1	4401.56
Daily Pivot Point S2	4367.74
Daily Pivot Point S3	4347.76
Daily Pivot Point R1	4455.36
Daily Pivot Point R2	4475.34
Daily Pivot Point R3	4509.16

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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