Market Analysis: US Stocks Continue to Rise


After a turbulent week filled with macroeconomic news and decisions of the central bank of the leading economies, on Monday morning futures for the E-mini S&P 500 index look bullish, being near the highs of the year.

The following factors contribute to the positive in the market:

  • Friday's data indicating a slowdown in inflation. The Core PCE Price index was 0.2% in monthly terms (expected = 0.3%, last month = 0.3%).
  • The probability of a rate hike in September according to FEDWatch is only 20%. The US economy is moving towards a soft landing, according to WSJ analysts.
  • Strong reports from a number of companies for the 2nd quarter, including Google. Also, market participants are looking forward to new reports with enthusiasm — news for AAPL, AMZN, AMD and other companies included in the S&P 500 index are scheduled this week.

However, analysts at Bank of America note that the cost of options used to hedge against falling stock prices is at an all-time low — evidence of excessive positivity in the market, which could lead to a correction.

The S&P 500 index chart shows that the price is in a vulnerable position for a pullback, as it is in the resistance area:

  • from the psychological level 4,600;
  • from the upper border of the ascending channel (shown in blue).

Support levels:

  • 4,490 level, which corresponds to approximately 50% of the rally from July lows to its high
  • median line of the ascending channel. It seems unattainable, but Bloomberg reminds us that August and September are historically the worst months for stock prices from the S&P 500 index.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share 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 Shares

AAPL Share Price Rises Nearly 1% after Scrapping Electric Vehicle Plans AMZN Share Price Hits 25-Month High After Inclusion in DJIA Index NVDA Share Price Soars 11% after Report TSLA Share Price Rises Sharply amid News of Musk's Increased Stake in the Company AMZN Share Price Rises Nearly 8% after Report

Latest articles


Brent Crude Oil Makes Sudden Rally As OPEC Countries Mull Low Output

Crude oil is a particularly unusual substance in that it is one of the only consumable commodities that institutions and private individuals widely trade across the spectrum of global markets, and it is a staple component as an energy resource

Forex Analysis

Australian Dollar Weakens amid Inflation News

According to data published today by the Australian Bureau of Statistics, the Consumer Price Index (CPI) value was: actual 3.4%, expected = 3.6%, a month ago = 3.4%, 2 months ago = 4.3%. Data shows Australia's consumer price growth


AAPL Share Price Rises Nearly 1% after Scrapping Electric Vehicle Plans

In 2021, the release of an electric car from Apple was expected in 2025, in 2022, the deadline was shifted to 2026. As it became known yesterday from Bloomberg and WSJ, Apple decided to completely abandon the project. Causes for

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.