S&P 500 CROSSES 3,000 FOR THE FIRST TIME AFTER DOVISH TESTIMONY BY THE FED CHIEF
S&P 500 futures are currently trading at 2994.50- higher by 0.41% as compared to the previous close. The index futures closed in positive territory in the last trading session also.
In the cash markets, the benchmark index inched up 0.4% to 2,991.92 led by gains in tech and energy sectors. The broad-market index on Wednesday climbed above 3,000 for the first time.
U.S. equities touched record highs today after testimony from Fed Chief Jerome Powell supported the case for easier monetary policy in the U.S. Stocks, however, erased their earlier gains as the chairman answered questions from lawmakers.
While answering questions from lawmakers, Chairman Powell said that the U.S. economy remains on solid ground.
Earlier in prepared testimony to the House Financial Services Committee, Chairman Powell said business investments across the U.S. have slowed as uncertainties over the economic outlook linger. The chairman further said that FOMC participants saw that the case for a more accommodative policy had strengthened.
Gains in Microsoft, Apple and Amazon.com were among the biggest boosts to the index.
Ten of the eleven major index’s sectors were trading in the green on Wednesday. Technology, communication services, and energy were top gainers at the time of writing.
Comcast Corp. rose 1.8% after Goldman Sachs upgraded the cable and media conglomerate’s rating to buy from hold.
The energy sector rose 1.41% as crude prices gained about 3%. Oil prices advanced today after industry data indicated that U.S. crude stockpiles fell more than the market expectation.
On the other hand, stocks of banks dropped after Fed Chief’s comments. The financial sector slipped 0.31% at the time of writing.
The benchmark index recorded 67 new 52-week highs and 1 new low.
On the economic front, Wholesale Inventories (MoM) for May released earlier today came in at 0.4%. The index change was in line with market expectations.
On the technical front, the RSI is currently at 64.85% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line 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.
Trade Suggestion-Limit Buy At 2992, Take Profit At 3004 Stop Loss At 2986