- The S&P 500 retreated below 4,400 after two consecutive days of gains.
- Ahead of Powell’s speech on Friday, hawkish words from Thomas Barkin boosted tightening expectations on the Fed.
- Eyes on S&P Global PMI data on Wednesday.
In Tuesday's session, the market sentiment remains mixed as investors await fresh catalysts to define their short-term trajectory.
On the downside, the US Treasury yield recovered during the mid-American session following Thomas Barkin's hawkish remarks, where he pointed out that if inflationary pressures don’t show evidence of giving in, more tightening would be necessary. In the meantime, the 2-year yield recovered back above 5% to its highest level since early July making the American stock market lose interest.
For the rest of the week, investors will closely watch US S&P Global Manufacturing and Service PMI figures from August, which will be released on Wednesday. It's worth noticing that a strong economy tends to favour the stock market. Still, due to the Federal Reserve (Fed) stance, evidence of a hot economy may make investors discount a more aggressively Fed, and in that case, it would apply pressure on the S&P.
According to the CME FedWatch tool, markets still expect a pause in September, followed by a 25 basis point (bps) hike in the November meeting. However, those odds may change following Jerome Powell’s speech on Friday at the Jackson Hole Symposium, where investors will look for clues regarding forward guidance.
SPX Levels to watch
According to the daily chart, the technical outlook for SPX remains bearish for the short term. The Relative Strength Index (RSI) remains deep in negative territory while the Moving Average Convergence Divergence (MACD) prints higher red bars. Additionally, the index is below its 20-day Simple Moving Averages (SMA) but above the 100 and 200-day averages, suggesting that on the bigger picture, the bulls still have the upperhand over the bears.
Supports: 4,370, 4,350, 4,300 (100-day SMA).
Resistances: 4,400, 4,420, 4,450.
SPX Daily Chart
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
Editors’ Picks
EUR/USD holds ground above 1.1700 amid softer US Dollar
EUR/USD holds ground above 1.1700 in the European session on Thursday. The pair stays supported as the US Dollar faces headwinds from lingering US tariffs and economic concerns. Attention turns to central bank talks and mid-tier US data for fresh trading impetus.
Cardano bulls eye for a rally as Bitcoin hits new record highs
Cardano price stabilizes trading at around $0.62 on Thursday after breaking out of a falling wedge pattern the previous day. This bullish breakout comes as Bitcoin reaches new all-time highs, fueling a wave of optimism for ADA and the overall cryptocurrency market.
GBP/USD stays well bid above 1.3600 as US Dollar continues to sag
GBP/USD trades with moderate gains above 1.3600 in European trading on Thursday. The US Dollar softens against the Pound Sterling amid growing uncertainty around the impact of Trump's tariffs on the economy and the Fed's interest rate outlook. Fedspeak and US data are awaited.
Gold price builds on steady intraday ascent amid softer USD, trade worries
Gold price is building on the overnight bounce from a one-and-a-half week low and gaining positive traction for the second straight day on Thursday. Investors remain on edge amid uncertainties surrounding US President Donald Trump's erratic trade policies and their impact on the global economy.
New US tariffs target Asia, but some countries stand to gain
President Trump’s new tariffs are higher than expected for most Asian economies. Moreover, most countries will face additional tariff rates on transshipments. The new announcements are silent on Singapore, India and the Philippines, which might stand to benefit from tariff concessions if negotiations progress favourably.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.