SP 500 Exchange rate
Editors’ Picks
AUD/USD bulls pause for a breather ahead of the US PCE Price Index
AUD/USD holds above 0.6600 in Friday’s Asian session, remaining close to yesterday's two-month high. Divergent RBA-Fed policy expectations support spot prices amid a broadly weaker US Dollar. However, bulls are pausing ahead of today’s key US PCE Price Index. Still, spot prices remain on track to register strong gains for the second consecutive week.
USD/JPY stays pressured near 155.00 on Fed-BoJ policy divergence
USD/JPY remains weak near 155.00 in the Asian session on Friday. The pair faces headwinds from expectations of the Fed-BoJ monetary policy divergence, which outweighs the fall in Japanese Household Spending in October. All eyes are on the delayed US Personal Consumption Expenditures Price Index data for September later on Friday.
Gold flat lines near $4,200 ahead of US PCE inflation release
Gold price (XAU/USD) trades on a flat note near $4,205 during the early Asian trading hours on Friday. Rising US Treasury yields and upbeat US jobs data cap upside for the precious metal. Traders might prefer to wait on the sidelines ahead of the key US inflation data. The US delayed the Personal Consumption Expenditures Price Index report for September, which will be published later on Friday.
XRP slides amid record on-chain activity, mixed technical signals
Ripple (XRP) is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.
Why the Fed may cut rates in December: Understanding the policy shift
The Fed has gone through a noticeable policy swing in recent months - from initiating a rate cut, to signaling a potential pause, and now shifting once again toward another cut in December. This has created understandable confusion among traders and investors trying to interpret the Fed’s reaction function.
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S&P 500
The Standard & Poor's 500 (S&P 500) is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States (US). It is seen as a leading indicator of US equities and includes approximately 80% of the total market capitalization of US public companies.
The S&P 500, operated by S&P Dow Jones Indices, is weighted by free-float market capitalization, meaning that larger companies have a greater impact on the index. Constituents and their weights are regularly updated based on rules set by S&P Dow Jones Indices.
The S&P Index Committee, comprising analysts and economists at Standard & Poor's, selects the companies based on criteria such as market size, liquidity, and industry grouping.
Over time, the S&P 500 serves as a key benchmark for the US economy.
HISTORIC HIGHS AND LOWS FOR S&P 500
- All-time records: Max: 6,001.35 on 11/11/2024 – Min: 4.40 on 05/1932
- Last 5 years: Max: 6,001.35 on 11/11/2024 – Min: 2,237.40 on 23/03/2020
* Data as of November 2024
ASSETS THAT INFLUENCE THE S&P 500
- Currencies: US Dollar (USD).
- Commodities: Oil and Gold.
- Bonds: US Treasury Bonds.
ORGANIZATIONS, PEOPLE, AND ECONOMIC DATA THAT INFLUENCE THE S&P 500
Since the S&P 500 is a benchmark of US stocks, its value is influenced by a variety of decisions and indicators affecting major companies, including:
- Economic indicators inflation – Consumer Price Index (CPI) and Producer Price Index (PPI) –, consumer confidence (University of Michigan Consumer Sentiment Index), economic growth (GDP), employment (Nonfarm Payrolls), and salaries (Average Weekly Earnings).
- Interest rates, decided by the Federal Reserve (Fed), the central banking system of the US. Jerome Powell, the 16th Chair of the Fed, has held the position since February 2018 after being nominated by Donald Trump and confirmed by the Senate.
- Fiscal policy, trade deals, and business laws decided by the US president, the Treasury Department and the Department of Commerce. The Treasury focuses on fostering economic stability, growth and financial integrity, while the Department of Commerce supports economic growth and established industrial standards.
- Energy prices such as electricity and Oil directly impact production costs for companies within the S&P 500.