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S&P 500 Index Strengthens Ahead of Fed Meeting

12/14/2022 2:32 PM

The leading index of the US economy S&P 500 corrects, trading around 4037.0.

Last week, analysts at JPMorgan Chase & Co. predicted growth of quotations within 10.0% if inflation in the US is lower than the forecast, but the asset was able to strengthen only by 2.2%. However, consumer prices increased in November by 7.1%, lower than October's growth of 7.7%, virtually guaranteeing a softening of the “hawkish” rhetoric of the US Federal Reserve. The meeting will take place this evening, and analysts expect the regulator to raise interest rates by 50.0 basis points to 4.50%: this signals that the agency is interested in a sharp tightening of monetary policy, and companies that are highly dependent on the cost borrowing, learn that their debt load will not be sharply increased once again.

10-year US Treasuries are traded at a rate of 3.496%, continuing to decline and retreat from the local maximum of the year at 4.210% in early November. Conservative 20-year papers also continue to decline, being at 3.737%.

Among the growth leaders are Moderna Inc. (+19.63%), Halliburton Co. (+7.87%), Match Group Inc. (+7.67%), and EPAM Systems Inc. (+5.35%).

Among the decline leaders are United Airlines Holdings (–6.94%), Trimble Inc. (–6.38%), and American Airlines (–5.21%).

The trading instrument continues the local corrective trend and forms an ascending corridor on the daily chart, rising toward the resistance line.

Technical indicators keep a buy signal: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram forms rising bars in the buying zone.

Resistance levels: 4090.0, 4310.0. | Support levels: 3990.0, 3830.0.

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