|

S&P 500 wraps up the week in red after tanking to June lows amid Fed’s hawkish stance

  • S&P 500 concluded the week at 4,320.06, marking a 0.23% daily and a 3.02% weekly drop, reaching levels last seen in June, with Nasdaq and Dow Jones also incurring losses
  • Federal Reserve’s decision to hold rates but revise upward projections for the Federal Funds rate for 2023 and 2024 spurred a sharp reaction in financial markets.
  • Sector-wise, Technology and Energy emerged as gainers, while Consumer Discretionary, Financials, and Real Estate were the laggards.

Wall Street finished the week on a lower note, mixed with the S&P 500, the Nasdaq, and the Dow Jones printing losses. Additionally, US equities plunged, led by the S&P 500 dropping to levels last seen in June.

S&P 500 plunges weekly, Nasdaq and Dow follow suit, as markets react to Federal Reserve’s upward revision of Federal Funds Rate projections

The S&P finished Friday’s session at 4,320.06, dropping 0.23%, but plunged -3.02% weekly. The heavy-tech Nasdaq edged lower by a minimal 0.09% and sank 3.21% weekly, while the Dow Jones Industrial dived 0.31% at 33,963.84 and slumped -1.89% in the week.

Sector-wise, the biggest gainers were Technology and Energy, each gained 0.26% and 0.15%. The laggards were Consumer Discretionary, Financials, and Real Estate, erasing from its value 0.87%, 0.74%, and 0.72%, respectively.

During the week, the Federal Reserve held the sixth monetary policy meeting, in which the US central bank decided to hold rates but upward revised their projections to the Federal Funds rate (FFR). For 2023, policymakers expect the FFR to end at 5.60%; for 2024, they increased their estimates from 4.6% to 5.1%.

The data spurred an aggressive reaction in the financial markets, with US equities plummeting sharply after hitting fresh weekly highs. US Treasury bond yields touched 16-year highs, led by 2s, 5s and 10s. Nevertheless, as traders booked profits before the weekend, US bond yields retraced, though they failed to undermine the Greenback.

Data-wise, S&P Global announced the final PMI readings in the United States (US). Manufacturing PMI improved to 48.9 but stood at recessionary territory. Contrarily, Services and Composite PMI showed signs of losing steam, though it expanded but continued to aim towards the 50 expansion/contraction threshold.

US Treasury bond yields finished the session with the 10-year benchmark note rate at 4.36%, lost 1.33%. The Greenback, as shown by the US Dollar Index, ended positively, climbing 0.19% to 105.58.

WTI rose by 0.85% daily in the commodity space underpinned by tight supply concerns stemming from Russia’s fuel export ban.

S&P 500 Price Action – Daily Chart

S&P 500 Technical Levels

SP 500

Overview
Today last price4318.73
Today Daily Change-8.93
Today Daily Change %-0.21
Today daily open4327.66
 
Trends
Daily SMA204461.83
Daily SMA504479.66
Daily SMA1004385.61
Daily SMA2004196.82
 
Levels
Previous Daily High4394.42
Previous Daily Low4326.49
Previous Weekly High4514.93
Previous Weekly Low4445.7
Previous Monthly High4590.64
Previous Monthly Low4337.34
Daily Fibonacci 38.2%4352.44
Daily Fibonacci 61.8%4368.47
Daily Pivot Point S14304.63
Daily Pivot Point S24281.59
Daily Pivot Point S34236.7
Daily Pivot Point R14372.56
Daily Pivot Point R24417.45
Daily Pivot Point R34440.49

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.

More from Christian Borjon Valencia
Share:

Editor's Picks

AUD/USD bounces off multi-month low, nears 0.6900

AUD/USD edges higher toward 0.6900 in the Asian session on Wednesday, recovering some of the previous day’s losses to its lowest level since March as the US Dollar stalls the hot US CPI-inspired rally amid hopes of a US-Iran peace deal. Meanwhile, hawkish comments from FOMC members have almost confirmed another December rate hike, which favors USD bulls and should cap the Aussie.

USD/JPY remains capped below 159.00 amid looming intervention risks

USD/JPY struggles to build on the previous day’s strong gains to a near one-month top as intervention risk supports the Japanese Yen while hopes of a US-Iran peace deal cap the safe-haven US Dollar. That keeps the pair's upside limited below 159.00, for now.

Gold struggles near $4,050 as Fed rate-hike bets intensify

Gold (XAU/USD) trades with modest gains on Wednesday after falling 2.67% the previous day, in the aftermath of hotter-than-expected US consumer inflation data and hawkish remarks from Federal Reserve (Fed) officials that fueled expectations of a more aggressive interest rate-hike path.

Crypto Today: Bitcoin, Ethereum and XRP struggle to find footing amid spot ETF outflows

Cryptocurrency prices are broadly consolidating near key lower support levels on Wednesday, led by Bitcoin, hovering around $74,000. Ethereum sits above $2,000 while its upside remains structurally capped. Ripple, meanwhile, holds delicately above $1.00.

Ten questions for China in 2027

2026 has been a year of slowing growth and increasing divergence within China's economy. We saw the gap between external and domestic demand, as well as between the new economy and the old economy, widen significantly. Here, we look ahead to the key questions facing China in 2027.

What the US CPI headline doesn’t tell you about inflation

Brent crude has fallen about a third since mid-October on hopes the Iran war is ending, but diesel, freight and fertiliser costs haven't followed. Those costs reach US consumer prices in stages through 2027 and could keep inflation high after gasoline gets cheaper.