FX.co ★ dlehner | S&P 500 Spotlight: Unraveling Market Trends with #SP500

Hello everyone! The S&P500 index broke out of the flat range at the end of July and is again near its all-time record levels at the beginning of August. These are the results of the earnings season, in which the IT and AI sectors proved to investors with their profits that the massive investments were justified. Now, technically, the S&P500 can break through 7800, but after that I see a scenario of a decline to the 7600 level. This will be a reaction to the release of the most important US inflation indicators – CPI on Tuesday–Wednesday and PPI on Thursday. The S&P500 index is very sensitive to Fed rate expectations. Accelerating inflation leads to tighter policy by the regulator. A further factor could be a deterioration in consumer sentiment. The Michigan index will be released on Friday.