. Daily Index Analysis - S&P 500 Soars on Fed's Rate Hike Pause.

Daily Index Analysis – S&P 500 Soars on Fed’s Rate Hike Pause.

Daily Index Analysis – S&P 500 Soars on Fed’s Rate Hike Pause.

02 Nov 2023

Introduction:

In the Indices Market, Asian stocks are on the rise, particularly in the tech sector, as concerns about the Fed’s intentions ease. Meanwhile, European shares are gaining momentum amid expectations that the Fed’s rate-hiking cycle might be drawing to a close. On Wall Street, positive sentiment prevails following the Federal Reserve’s decision to maintain interest rates, backed by comments from a senior Fed official indicating a potential end to rate increases while keeping the door ajar for future hikes.

Market In Focus for today – S&P 500

On Thursday, optimism in Wall Street futures was fuelled by the belief that the Federal Reserve had potentially concluded its series of interest rate hikes. Additionally, positive corporate earnings projections contributed to the improved market sentiment.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4249.11 | Positive Crossover | Bullish
  • MA 20: 4224.45 | Positive Crossover | Bullish
  • MA 50: 4263.39 | Positive Crossover | Bullish

Simple:

  • MA 5: 4244.07 | Positive Crossover | Bullish
  • MA 20: 4201.87| Positive Crossover | Bullish
  • MA 50: 4287.66 | Negative Crossover | Bearish

RSI (Relative Strength Index): 59.77| Buy Zone| Positive

Stochastic Oscillator: 100 | Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4282.87 | R2: 4380.37
  • S1: 4197.20| S2: 4121.02

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 4304.20 | Take Profit: 4380.37| Stop Loss: 4257.04.

Elsewhere in the Indices Market

Asian stocks rises as tech rallies on easing Fed ears.

The Shanghai composite is down at 0.45%. Overall, the Singapore MSCI up 0.04% to 272.52. Over in Hong Kong, the Hang Seng Index up 0.75% to 17,230.59. In Japan, the Nikkei 225 up 1.10% to 31,949.89, while the Topix index was up 0.51% to 2,322.39. South Korea’s Kospi up 1.81% to 2,343.12. Australia S&P/ASX 200 up 0.90% to, 6,899.70.

European shares gain on bets of Fed rate-hiking cycle end.

The DAX futures contract in Germany traded 1.55 higher, CAC 40 futures in France up 1.21% to 7,047.69 and the UK 100 futures contract in the U.K. up 1.21% to 7,431.46.

Wall St advances as Fed keeps rates steady.

On Wednesday, the major stock indices on Wall Street concluded the day with gains. This positive trend followed the U.S. Federal Reserve’s decision to maintain the current interest rates. Additionally, remarks from the Fed’s senior official boosted investor confidence, suggesting that rate increases may have come to a halt, even though the possibility of future hikes remains open.

Indexes: Dow up 0.67%, S&P 500- up 1.05%, Nasdaq up 1.64%.

Corporate News:

Amazon.com, Inc. (AMZN) up 2.94% at 137.00, Walt Disney Co (DIS) down 0.64% at 81.07, Apple Inc. (AAPL) up 1.87% at 173.97. Goldman Sachs Group Inc (GS) up 1.17% at 307.16, Morgan Stanley (MS) up 0.18% at 70.95.

Key Economic Events & Data Release Today:

(USD) FOMC Press Conference at 00:00.

(EUR) German Manufacturing PMI (Oct) Forecast 40.7, Previous 39.6 at 14:10

(GBP) BOE MPC Meeting Minutes at 17:30.

(GBP) BOE Interest Rate Decision (Nov) Forecast 5.25%, Previous 5.25% at 17:30.

(USD) Initial Jobless Claims Forecast 210K, Previous 210K at 18:00.

(GBP) BOE Gov Bailey Speaks at 19:45.