S&P 500 RISES ABOVE MA5 AS FED SIGNALS RATE CUTS
S&P 500 futures are currently trading at 2950- higher by 0.78% 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 hit an all-time high of 2,956.20 earlier in the session. The broad-market index rose today led by gains in energy and tech sectors.
U.S. equities advanced today after the Federal Reserve signaled it was ready to cut interest rates as early as next month to combat growing risks to global and domestic growth.
The U.S. central bank’s statement on Wednesday sent the yield on the 10-year Treasury note to its lowest level since November 2016.
Energy stocks were the best performers in the index, gaining 2.16% on the day as oil prices rose. Baker Hughes and Occidental Petroleum added 4.42% and 2.07% respectively at the time of writing.
The biggest boost to the index was provided by the technology sector, which gained 1.16% with Oracle Corp. leading the gains. The Redwood, California-based company’s stocks surged 7.88% after it reported earnings for the fiscal fourth quarter that beat the market expectation.
Stocks of Boeing gained 1.51% after the company said it is in talks with other airlines for sales of its 737 MAX.
On the other hand, stocks of Carnival Corp. plunged 12% after slashing its profit forecast for the year on President Trump administration’s sudden ban on cruises to Cuba and weakening demand in Europe over political uncertainty.
The S&P 500 index has rallied more than 7% so far this month. The benchmark index recorded 95 new 52-week highs and 3 new lows.
On the economic front, Initial Jobless Claims released earlier today fell to 216K in the week ended 15th June from 222K in the week prior. Claims figure was also below the consensus estimates of 220K. In addition, Philadelphia Fed Manufacturing Index for June also released earlier today came in at 0.3. The index reading was below the market expectation of 10.6.
On the technical front, the RSI is currently at 68.14% 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 2946, Take Profit At 2960 Stop Loss At 2939