US equities mix on Friday, S&P 500 threatens a pullback

  • S&P 500, NASDAQ Composite end six-day record streaks.
  • Despite weaker Friday, US indexes closed in the green for a third straight week.
  • US Fed on the docket for next week.

US equities closed mixed on Friday to cap off a week of stunning record closes. Over-eager markets that have been leaning into rate cut bets in recent weeks second-guessed US economic conditions after US Personal Consumption Expenditure (PCE) Price Index figures showed cooling inflation, but consumer spending and housing activity hinted at a US economy that is too robust to allow for a rapid approach on Federal Reserve (Fed) rate cuts.

Money markets repriced odds of a first rate trim from the Fed to the Federal Open Market Committee’s (FOMC) meeting in May, with bets of a March rate cut down to 47% according to the CME’s FedWatch Tool.

US Core YoY PCE Price Index figures for December printed at 2.9% on Friday, below the forecast 3.0% and slipping back from the previous period’s 3.2%. Markets initially rose on reaction to the good news that cooling inflation might lead to faster, sooner rate cuts from the Fed, but an uptick in Personal Spending and Pending Home Sales put a damper on rate hopes.

US Personal Spending rose 0.7% in December compared to the 0.4% forecast and 0.4% previous (revised from 0.2%), and Pending Home Sales jumped 8.3% in December compared to the forecast 1.5% and -0.3% previous (revised from 0.0%).

Revenue forecasts on Wall Street missed expectations for major tech stocks including Intel and chipmaker tool manufacturer KLA Corp, causing equities to rethink recent bullish momentum on tech hopes alongside recent declines in tech darlings Tesla and Apple.

The Dow Jones Industrial Average (DJIA) gained 60 points to close up 0.16% at $38,109.43 while the Standard & Poor’s 500 (S&P) Major equity index closed down 0.07%, shedding a little over 3 points and ending Friday at $4,890.97.

The NASDAQ Composite declined on tech stock hesitancy, losing 55 points and closing down by a third of a percent at $15,455.36.

S&P Technical Outlook

The S&P closed in the green for a third straight week, chalking in 12 winning weeks out of the last 13, and the major index is up nearly 20% from the last significant swing low into $4,102.02 in October.

The S&P 500 is trading well above the 200-day Simple Moving Average (SMA) near $4,425.00, and is in play near the $4,900.00 as investors eye another push towards the $5,000.00 major handle nearby.

S&P 500 Hourly Chart

S&P 500 Daily Chart

SP 500

Today last price 4887.06
Today Daily Change -7.85
Today Daily Change % -0.16
Today daily open 4894.91
Daily SMA20 4780.78
Daily SMA50 4689.34
Daily SMA100 4512.25
Daily SMA200 4430.71
Previous Daily High 4896.6
Previous Daily Low 4865.96
Previous Weekly High 4839.58
Previous Weekly Low 4714.37
Previous Monthly High 4794.65
Previous Monthly Low 4542.87
Daily Fibonacci 38.2% 4884.9
Daily Fibonacci 61.8% 4877.66
Daily Pivot Point S1 4875.05
Daily Pivot Point S2 4855.18
Daily Pivot Point S3 4844.41
Daily Pivot Point R1 4905.69
Daily Pivot Point R2 4916.46
Daily Pivot Point R3 4936.33



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 clings to recovery gains near 1.0650

EUR/USD clings to recovery gains near 1.0650

EUR/USD trades in positive territory near 1.0650 on Wednesday. The US Dollar sees a modest retreat, helping the pair recover previous losses. The EUR/USD rebound, however, appears limited amid Fed-ECB policy divergence. ECB and Fed speeches eyed. 


GBP/USD holds above 1.2450 after UK inflation data

GBP/USD holds above 1.2450 after UK inflation data

GBP/USD is holding onto the latest upside above 1.2450 in the European session on Wednesday. The UK's ONS reported that the annual inflation edged lower to 3.2% in March. This reading beat the market expectation of 3.1% and helped Pound Sterling stay afloat.


Gold fluctuates near $2,390 as markets keep an eye on geopolitics

Gold fluctuates near $2,390 as markets keep an eye on geopolitics

Gold trades in a relatively tight range near $2,390 in the second half of the day on Wednesday. In the absence of high-tier data releases, investors keep a close eye on headlines surrounding Iran-Israel conflict.

Gold News

XRP tests $0.50 resistance after Ripple CLO clarifies that no pretrial conference took place with SEC

XRP tests $0.50 resistance after Ripple CLO clarifies that no pretrial conference took place with SEC

XRP is stuck below $0.50 resistance after failing to close above this level since Monday. Ripple CLO Stuart Alderoty said late Tuesday there was no pretrial conference since the SEC dropped charges against executives. 

Read more

World economy: To cut or not to cut (simultaneously)?

World economy: To cut or not to cut (simultaneously)?

US inflation March figure, again higher than expected, put an end to the scenario of a simultaneous first rate cut by the Fed, the ECB, and the BoE in June. 

Read more