Market Analysis: E-mini S&P 500 Stock Market under Pressure

FXOpen

In 3 trading sessions this week, the S&P 500 is down approximately 2.85%. This pace has not been observed since March, when traders feared a banking crisis.

Possible reasons for the current decline:
→ at the end of August there will be a summit in Jackson Hole, where representatives of central banks will gather. Powell is expected to speak on August 25. It is acceptable to assume that market participants fear the continuation of a tight monetary policy. In parallel, the BRICS summit will be held in South Africa, which Xi Jinping will visit.
→ Prospects for an economic crisis in China that could spread to the whole world. Today it became known that the largest Chinese developer Evergrande (whose shares are traded in New York) has filed for bankruptcy, which should lead to new bankruptcies.
→ A series of reports of companies from the index for the Q2, which disappointed investors.

Meanwhile, Markets Insider publishes the opinion of experienced investor Bill Miller, who believes that after a strong first half of the year, a second may follow. Moreover, inflation is declining, while GDP growth remains stable.

The chart of the S&P-500 index shows that the decline accelerated after the bears cleared a block of support from the median line of the ascending channel and the level of 4,460. The next such block may form the lower line of the channel, where support from the June low also passes. At the same time, the results of the summits in Jackson Hole and Johannesburg may contribute to the return of positive to the market.

Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Indices

Nvidia's Successes Helps S&P 500 Price Reach Its All-time High S&P 500 Inches Down After Long Rally as FOMC Minutes Approach NASDAQ Price Declining Ahead of NVDA Report News about US Inflation Shake Markets S&P500 has been on a roll, but will it continue?

Latest articles

Indices

Nvidia's Successes Helps S&P 500 Price Reach Its All-time High

Yesterday, the price of the S&P 500 stock index rose to record closing highs on Thursday. Moreover, such a growth rate (+2.11% per day) has not been observed for 13 months. Reasons for Extremely Bullish Sentiment: → Nvidia's

Forex Analysis

Market Analysis: AUD/USD and NZD/USD Grind Higher Steadily

AUD/USD is moving higher and might rally if it clears 0.6600. NZD/USD is also rising and could extend its increase above the 0.6220 resistance zone. Important Takeaways for AUD/USD and NZD/USD Analysis Today· The

Forex Analysis

Commodity Currencies Strengthen after the FOMC Minutes Publication

The fundamental data of recent trading sessions contributed to a slight strengthening of commodity and European currencies. Thus, the AUD/USD pair, after forming a bullish engulfing combination, managed to confidently gain a foothold above 0.6500. The pound/US

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.