S&P 500 rebounds after printing fresh annual lows just above 4,100, with Fed and NFP in focus


  • In a choppy start to the month, the S&P 500 hit fresh annual lows just above 4,100.
  • The index has since bounced back to the 4,150 area, though investors are cautious ahead of key risk events.
  • The Fed is expected to lift interest rates by 50 bps this week and official jobs data is due Friday.

In a choppy start to the month, the S&P 500 index hit a fresh annual low just above the 4,100 level shortly after the US open, only to then reverse about 50 points higher again. At current levels near 4,150 the index trades with gains of about 0.6% on the day, with investors focused on a barrage of key upcoming risk events, including Wednesday’s Fed meeting and Friday’s release of the April US labour market report.

While investors will welcome Monday’s bounce from annual lows, most won’t be betting that the recovery extends back to mid-April levels around the 4,400s. The Fed is expected to hike interest rates by 50 bps this week, as well as signaling more rate hikes of at least 50 bps in the meetings ahead in its bid to get interest rates back to around 2.50% by the year’s end to tame inflation. The bank is also expected to announce its quantitative tightening plans.

Ahead of this, longer-term US bond yields are back on the front foot, with the 10-year looking to break back above 3.0% for the first time since late 2018. If this trend continues this week, that will create a particularly difficult backdrop for high price/earnings ratio stocks, which includes most large-cap tech and growth stocks, to continue to recover.

And it's not just higher interest rates and Fed tightening that investors have to worry about. Growth concerns have been in focus at the start of the week, with official Chinese April PMI surveys out over the weekend and missing expectations by some margin, and the latest underwhelming US ISM Manufacturing PMI figures not helping. The headline index fell to its weakest since 2020, just as the supplier delivery sub-index hit a five-month high to reflect worsening lead times the Russo-Ukraine war and China lockdowns worsen global supply chain issues.

The latest index also suggested that firms continued to struggle to hire/hold onto workers in April, suggesting that while indicators of labour market slack released in Friday’s official labour market report may remain robust, the headline NFP number might be weak.

Turning to the other major US indices; the tech-heavy Nasdaq 100 index was last trading about 0.6% higher, though also hit fresh annual lows earlier on Monday and remains unable to break back above the 13,000 level. Meanwhile, the Dow was last trading higher by about 0.3%, though still remains above 33,000 and about 2.5% above earlier annual lows.

SP 500

Overview
Today last price 4149.89
Today Daily Change 18.41
Today Daily Change % 0.45
Today daily open 4131.48
 
Trends
Daily SMA20 4381.42
Daily SMA50 4380.04
Daily SMA100 4483.49
Daily SMA200 4498.15
 
Levels
Previous Daily High 4286.18
Previous Daily Low 4122.09
Previous Weekly High 4306.6
Previous Weekly Low 4122.09
Previous Monthly High 4592.12
Previous Monthly Low 4122.09
Daily Fibonacci 38.2% 4184.77
Daily Fibonacci 61.8% 4223.5
Daily Pivot Point S1 4073.65
Daily Pivot Point S2 4015.83
Daily Pivot Point S3 3909.56
Daily Pivot Point R1 4237.74
Daily Pivot Point R2 4344.01
Daily Pivot Point R3 4401.83

 

 

Share: Feed news

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended content

Editors’ Picks

EUR/USD struggles to hold above 1.0400 as mood sours

EUR/USD struggles to hold above 1.0400 as mood sours

EUR/USD stays on the back foot and trades slightly below 1.0400 following the earlier recovery attempt. In the absence of high-tier data releases, the negative shift seen in risk mood helps the US Dollar gather strength and forces the pair to stretch lower. 

EUR/USD News
GBP/USD declines toward 1.2500 on renewed USD strength

GBP/USD declines toward 1.2500 on renewed USD strength

GBP/USD loses its traction and declines to the 1.2500 area in the second half of the day on Monday. The US Dollar (USD) benefits from safe-haven flows and weighs on the pair as investors await US Consumer Confidence data for December.

GBP/USD News
Gold drops below $2,620 as US bond yields edge higher

Gold drops below $2,620 as US bond yields edge higher

After starting the week in a quiet manner, Gold comes under bearish pressure and retreats below $2,620. The benchmark 10-year US Treasury bond yield stays in positive territory above 4.5%, making it difficult for XAU/USD gain traction.

Gold News
Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin hovers around $95,000 on Monday after losing the progress made during Friday’s relief rally. The largest cryptocurrency hit a new all-time high at $108,353 on Tuesday but this was followed by a steep correction after the US Fed signaled fewer interest-rate cuts than previously anticipated for 2025. 

Read more
Bank of England stays on hold, but a dovish front is building

Bank of England stays on hold, but a dovish front is building

Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures