SPDR S&P 500 ETF Trust (SPY) News and Forecast: Rising yields continue putting pressure on equities
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get all exclusive analysis, access our analysis and get Gold and signals alerts
Elevate your trading Journey.
UPGRADE- SPY and other indices turn lower as yields rise further on Thursday.
- Nasdaq (QQQ) is the worst performer as yield-sensitive stocks fall.
- Tesla stock moves against crowd, gains 3%.
A day of significant movement for the bond market eventually fed through to the stock market as investors took flight from yet more hawkish commentary from central bankers. All sectors closed in the red for the S&P 500 with energy (XLE) taking the worst hit, losing 3%, while communications (XLC) also took a near 3% loss. The best performing sectors were Consumer Staples (XLP) and Real Estate (XLRE). Unsurprisingly, the VIX moved up a few points to 23, but it is bond market volatility, the MOVE index, that is creating the bigger gains and spooking global markets.
SPY Stock News
The rise in yields is continuing on Friday after what we would see as relatively unsurprising comments from Fed chair Powell. 50 basis points looks like a certainty for the May meeting, and in fact the fed funds futures contract has this at a near 100% certainty. However, further out in the calendar three consecutive 50 basis point rises now look odds on also. This is what spooked high debt companies and high growth names, many of whom litter the Nasdaq. Tesla (TSLA) did notably close 3% higher on Thursday following its strong earnings, but this in fact was a 3% fall from where the stock opened the regular session.
SPY Stock Forecast
Thursday saw a large bearish engulfing candle, which demonstrates the relative calm from previous days. A move of 1.5% is not huge by recent standards but was still enough to overshadow most of the week's gains. The SPY also stalled at the 200-day moving average and so finds itself lacking short-term direction. More chop is likely in the short term as earnings season plays out. Big tech could yet save us. For now the medium term picture is bearish with a series of lower highs. Key resistance remains at $458 with $428 the immediate support. $415 is a powerful double bottom and a break here will likely see the SPY trade below $400.
SPY chart, daily
- SPY and other indices turn lower as yields rise further on Thursday.
- Nasdaq (QQQ) is the worst performer as yield-sensitive stocks fall.
- Tesla stock moves against crowd, gains 3%.
A day of significant movement for the bond market eventually fed through to the stock market as investors took flight from yet more hawkish commentary from central bankers. All sectors closed in the red for the S&P 500 with energy (XLE) taking the worst hit, losing 3%, while communications (XLC) also took a near 3% loss. The best performing sectors were Consumer Staples (XLP) and Real Estate (XLRE). Unsurprisingly, the VIX moved up a few points to 23, but it is bond market volatility, the MOVE index, that is creating the bigger gains and spooking global markets.
SPY Stock News
The rise in yields is continuing on Friday after what we would see as relatively unsurprising comments from Fed chair Powell. 50 basis points looks like a certainty for the May meeting, and in fact the fed funds futures contract has this at a near 100% certainty. However, further out in the calendar three consecutive 50 basis point rises now look odds on also. This is what spooked high debt companies and high growth names, many of whom litter the Nasdaq. Tesla (TSLA) did notably close 3% higher on Thursday following its strong earnings, but this in fact was a 3% fall from where the stock opened the regular session.
SPY Stock Forecast
Thursday saw a large bearish engulfing candle, which demonstrates the relative calm from previous days. A move of 1.5% is not huge by recent standards but was still enough to overshadow most of the week's gains. The SPY also stalled at the 200-day moving average and so finds itself lacking short-term direction. More chop is likely in the short term as earnings season plays out. Big tech could yet save us. For now the medium term picture is bearish with a series of lower highs. Key resistance remains at $458 with $428 the immediate support. $415 is a powerful double bottom and a break here will likely see the SPY trade below $400.
SPY chart, daily
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.