Key Points:
- S&P 500 closed at 5,699.20, with a session high of 5,702.70.
- Fed maintains rate outlook, projects two cuts in 2025.
- Traders eye jobless claims and corporate earnings.
US stock futures rose on Thursday as traders reacted positively to the Federal Reserve’s reaffirmation of two interest rate cuts this year, helping to sustain bullish sentiment in equities.
On Wednesday, the Dow Jones climbed 0.92%, the S&P 500 gained 1.08%, and the Nasdaq Composite advanced 1.41% as all 11 S&P sectors ended in the green. The consumer discretionary, energy, and technology sectors led the rally.
The Fed kept interest rates steady but signaled multiple rate cuts ahead, citing slowing economic growth and a cooling labour market. However, Fed Chair Jerome Powell dismissed inflation concerns stemming from President Trump’s tariff policies, calling them short-term risks.
Technical Analysis
The S&P 500 (SPX) is trading near 5,699, up 0.28%, after testing a high of 5,721.15. The index has rebounded from its recent low of 5,601.8, showing signs of bullish momentum. The moving averages are trending upward, supporting the price, while the MACD indicator is flattening, suggesting a potential slowdown or consolidation.
Picture: S&P 500 edges higher, testing key resistance near 5,721, as seen on the VT Markets app
A break above 5,721 could push the index toward 5,750, while failure to hold current levels may lead to a retracement toward 5,680 or lower support at 5,650. Market sentiment remains tied to Fed policy expectations and macroeconomic indicators.
Additionally, key earnings reports from Nike, FedEx, Micron Technology, and Darden Restaurants are set to impact market sentiment.
