S&P 500, Nasdaq 100 pricesCartasand Analysis
- Rising market gains are seen in the S&P 500 and Nasdaq 100.
- Thursday could see increased volatility in Q1 earnings and US GDP output.
The U.S. stock market pulled back some big losses on Tuesday in early European trade with the S&P 500 around 60 points higher than yesterday’s close, while the Nasdaq 100 was 300 points above Tuesday’s rare. Growing concerns that the Fed’s hawkish monetary policy may hit U.S. growth badly in the coming months, as expectations of an interest rate hike continue to bite, and some worrying corporate earnings releases have caused the U.S. index to fall. The S&P 500 hit a new five-week low on Tuesday while the Nasdaq 100, already in bearish market territory, traded at its lowest level seen since March 2021. Both pullbacks look like traditional bear market rallies typically seen after big sell-offs. and lower prices are likely to happen going forward.
S&P 500, Nasdaq 100 Weekly Forecast – Bonds Generate Hammer Equity Sentiment
While the current outlook remains bleak, there are some high -interest Q1 earnings releases and recent views on U.S. growth and inflation that may make or break the current move. On Thursday, the US Bureau of Economic Analysis will release a report on advanced US Q1 GDP with q/q growth seen to contract sharply in the first three months of 2022 to 1.1% from 6.9% last quarter. A significant pace or lag in tomorrow’s data will add additional volatility to an already highly volatile equity complex. In addition to GDP data, on Friday the Fed’s favored price pressure measure, Core PCE, was released with inflation expected to slow by 0.1% to 5.3% y/y in March.
For all the data releases and events that drive the market, see DailyFX Economic Calendar
At the U.S. Q1 corporate earnings docket Thursday, various high -profile companies will release their latest quarterly figures. After the closing bell tomorrow however there are two names demanding attention, Apple (AAPL) and Amazon (AMZN). Apple is the largest constituent of the S&P 500s by weight (7.1%), while Amazon is the third largest (3.7%). In the Nasdaq 100, this weightage is higher with Apple at 12.8% and Amazon at 7.15%. Just like US GDP and PCE output, any pace or lag of expectations will have an overwhelming impact on both indices.
The S&P 500 respected March’s double -digit low of 4,138 yesterday and while this may hold in the short term, aggressive selling over the past month suggests that it will be tested again. Below, 4,106 controls the longer horizontal support at 4,060 and 4,034. Any upward movement will find initial resistance at 4,308.
S&P 500 Daily Price Chart – April 27, 2022
The Nasdaq 100 daily chart remains bearish and Tuesday’s test of 12,923 is likely to be repeated in the current environment. Volatility, measured by the ATR indicator resulted in 12,623 and 12,212 exposed.
Nasdaq 100 Daily Price Chart – April 27, 2022
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