. S&P 500 Set to Rise Ahead of Fed Rate Decision - 14 June 2023

S&P 500 Set to Rise Ahead of Fed Rate Decision

14 Jun 2023

S&P 500 likely to open higher ahead of Fed rate decision

After a new inflation report reinforced views that the Federal Reserve could decide against raising interest rates later in the day, the S&P 500 was expected to open higher on Wednesday.

Producer prices decreased by 0.3% last month, compared to a 0.2% increase in April, while prices were projected to decline by 0.1% by economists surveyed by Reuters.

The estimate on producer prices comes a day after statistics revealed that in May, consumer inflation moderated.

 Interest rates are anticipated to remain unchanged in the 5%–5.25% level for the first time since the U.S. central bank began a historically aggressive bout of monetary tightening in March 2022.

At 2 p.m. EDT (1800 GMT), the central bank will deliver its policy statement and updated quarterly economic predictions. Chair Jerome Powell will then hold a news conference.

Brad Bernstein, managing director at UBS Wealth Management, said that neither he nor the Fed knew whether this marked the end of rate increases for this cycle.

“I believe we’ll experience what’s known as a hawkish pause today, where they’ll discuss their concerns about inflation while remaining silent on rate increases.”

U.S. equities have increased recently, driving the benchmark S&P 500 and Nasdaq to 14-month highs, helped by positive earnings season, hints of economic resiliency, and expectations that interest rates were close to their top.

S&P 500 TECHNICAL ANALYSIS DAILY CHART:

  • S&P 500 is currently trading in the up channel.
  • S&P 500 is currently trading above all SMA.
  • RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
  • Immediate resistance is at 4374.60 & its immediate support level is 4346.07

HOW TO TRADE S&P 500 IN THIS WEEK

The S&P 500 is currently trading at a resistance level; if this zone is broken further gains can be expected. The S&P 500 is moving steadily and higher in an uptrend.

TRADE SUGGESTION- BUY AT 4374.60, TARGET AT 4413.68, SL AT 4346.07