S&P 500 Daily Price Analysis – US500 Climbs on Tesla and Paramount Gains Ahead of Key Fed Minutes

The S&P 500 futures are trading at 5,518.72, up 0.16%, as investors await key economic reports and Federal Reserve meeting minutes.

Key Points

• Key economic data due today includes ADP Nonfarm Employment Change, Initial Jobless Claims, ISM Non-Manufacturing PMI, and S&P Global Services PMI.
• The Fed’s meeting minutes will provide monetary policy insights, with early market closures potentially increasing volatility.
• The S&P 500 remains bullish above the 200 EMA, with resistance at 5,533.40 and 5,558.90.

S&P 500 Daily Price Analysis – 03/07/2024

The S&P 500 ended Tuesday’s session at 5,509.67, marking a 0.57% gain from its opening at 5,478.92. The index was buoyed by notable performances from Tesla, which surged over 10% following robust Q2 vehicle deliveries, and Paramount Global, which climbed more than 5% on speculation of a takeover bid by billionaire Barry Diller. Bank of America also contributed to the positive sentiment, gaining over 2% after receiving an upgrade to “Buy” from Seaport Global Securities with a price target of $48.

However, CrowdStrike Holdings was the biggest percentage loser on the Nasdaq 100 (-1%) after Piper Sandler downgraded it to “Neutral” from “Overweight.” In addition, economic data revealed that U.S. JOLTs job openings grew unexpectedly higher to 8.140M in May compared with expectations of an increase at a level of 7.960M and supported the positive outlook​.

And the S&P 500 futures have been trading at 5,518.72 as of this Wednesday morning (+0.16% from opening price which was at 5,509.87). The small gain suggests investors are hedging their bets as they await more economic reports and the minutes from last month’s Federal Reserve policy meeting. This positive momentum follows dovish comments from Federal Reserve Chair Jerome Powell, who indicated that inflation is on a downward trend but emphasized the need for more evidence before considering rate cuts.

Key Economic Data and News to Be Released Today

Today’s trading will likely be influenced by the release of the ADP Nonfarm Employment Change data and the U.S. Initial Jobless Claims. Economists forecast the ADP figure to be 163K, an increase from the previous 152K, and the Jobless Claims to be 234K, slightly higher than last week’s 233K. Additionally, the ISM Non-Manufacturing PMI and the S&P Global Services PMI are expected to come in at 52.6 and 55.1, respectively. Positive surprises in these data points could further support the upward movement in the S&P 500.

Moreover, the market will be paying close attention to the Federal Reserve’s meeting minutes for insights on future monetary policy directions. The bond market is also in focus, with the yield on the 10-year U.S. Treasury note currently at 4.435%, indicating stable investor sentiment. With early market closures today ahead of the Independence Day holiday, trading volumes might be lower, potentially leading to increased volatility.

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S&P 500 Technical Analysis – 03/07/2024

The S&P 500 is in a bullish trend, confirmed by the price staying above the 200 EMA and breaking through the first resistance level. The RSI also supports the continuation of the upward trend without immediate risk of being overbought.

The next resistance level at 5,533.40 could be the next target if the bullish trend continues. If the momentum persists, the price may even reach the R3 level at 5,558.90. However, if there is a pullback, the price might find support around the R1 level (5,508.64) or the pivot point (5,492.15).

S&P 500 Fibonacci Key Price Levels 03/07/2024

Traders should keep a close eye on the following key price levels for the day: