S&P 500 CLOSES AT RECORD HIGH LEVEL ON DOVISH FED HOPES
S&P 500 futures were closed on Wednesday at 3000.75- higher by 0.74% as compared to the previous close. The index Futures closed in positive territory in the previous trading session also.
In the cash markets, the benchmark index gained 0.77% to finish its trading day at a new record closing high of 2,995.82 on Wednesday. It was the S&P 500’s third straight record close. The broad market also hit a new intraday high of 2,995.84 earlier in the session. The consumer staples and real estate sectors boosted the index on Wednesday.
U.S. equities ended today at record highs as traders bet on a potential rate cut from the country’s central bank at the end of this month after the release of weaker-than-expected economic data.
President Donald Trump said earlier today that the U.S. should match monetary policies from Europe and China, noting they are playing currency manipulation game and pumping money into their system in order to compete with the USA.
The yield on the 10-year Treasury note today fell to the lowest level since November 2016. The U.S. benchmark was yielding 1.953% at the time of writing. It was above 2.5% at the start of May.
Stocks of index-member Symantec Corp. today jumped more than 13% on news the software company is in talks to be acquired by chipmaker Broadcom.
The consumer staples, defensive utilities, and real estate gained the most among the 11 major index’s sectors as the falling bond yields made shares that give high dividends more attractive.
The benchmark index recorded 85 new 52-week highs and no new lows. The index has gained more than1% so far this week.
On the economic front, the ISM Non-Manufacturing PMI for June released earlier today came in at 55.1. The PMI reading was below the market expectation of 56.1.
In addition, Initial Jobless Claims also released earlier today fell to 221K in the week ended 29th June from 229K in the week prior. Claims figure was, however, above the consensus estimates of 220K.
On the technical front, the RSI is currently at 72.41% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the upper band of the Bollinger bands and is heading upwards.
Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets. This trade can remain valid until Friday.
Trade Suggestion-Limit Buy At 2997, Take Profit At 3009 Stop Loss At 2991