]S&P 500 Sets a Record: Six Weeks of Steady Gains
The S&P 500 Index has set a new record by completing its sixth consecutive week of gains, a feat that underscores its strength in 2024. With this performance, the index has recorded its 46th and 47th highest closes of the year, underscoring the market's resilience amid challenging economic conditions.
Continued S&P 500 Successes
The S&P 500's positive streak has been driven by a number of factors, including encouraging financial results from large corporations, which has fostered a climate of confidence among investors. This steady growth reflects renewed optimism about the ongoing economic recovery.
Dow Jones milestones
Meanwhile, the Dow Jones Industrial Average has surpassed the 43,000-point mark, reaching multiple record closes along the way. This performance highlights the strength of large company stocks, which have played a key role in the overall market advance.
Growth Drivers
The S&P 500's rise has been fueled by several elements. A positive retail sales report has improved market sentiment, while expectations that the Federal Reserve may achieve a “soft landing” have strengthened confidence in the economy. In addition, the performance of financial institutions such as Morgan Stanley, JPMorgan and Goldman Sachs has indicated a pickup in investment banking activity.
Instability in the Technology Sector
However, the technology sector has shown some volatility. ASML disappointed by failing to meet quarterly order expectations. However, an outstanding report from Taiwan Semiconductor Manufacturing (TSM) revived optimism in the sector, reinvigorating artificial intelligence-related trading.
Technical Outlook
S&P 500 (Ticker AT: USA500) has been moving in a sideways range initiated in May, which was pierced as of September 18 to new highs returning to the long-term trend that can move the index up to 6,000 points with a current high of 5,886.35 points. The control zones show a value in the zone of 5,471 points precisely within this lateral range, sustained by a support at 5,398 points where it has bounced twice. The RSI indicates a slight overbought of 65.18% which could indicate a continuation of the index's growth. The golden crossover indicator indicated an entry from August 13. Golden crossovers occur when the 50-day SMA crosses above the 200-day SMA, indicating a definite uptrend. This trend shows no signs of ending at the moment, so the bullish expansion may last at least until the issuance of the next nonfarm payrolls and fed adjustments.
Looking Ahead
This week is anticipated to be a key one, with a series of earnings reports from major companies, including electric vehicle manufacturer Tesla. These results could significantly influence the performance of the S&P 500 and other stock indices.
The combination of an upbeat macroeconomic outlook and positive financial results suggests that the S&P 500 will continue its upward trajectory.
Ion Jauregui - ActivTrades Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Continued S&P 500 Successes
The S&P 500's positive streak has been driven by a number of factors, including encouraging financial results from large corporations, which has fostered a climate of confidence among investors. This steady growth reflects renewed optimism about the ongoing economic recovery.
Dow Jones milestones
Meanwhile, the Dow Jones Industrial Average has surpassed the 43,000-point mark, reaching multiple record closes along the way. This performance highlights the strength of large company stocks, which have played a key role in the overall market advance.
Growth Drivers
The S&P 500's rise has been fueled by several elements. A positive retail sales report has improved market sentiment, while expectations that the Federal Reserve may achieve a “soft landing” have strengthened confidence in the economy. In addition, the performance of financial institutions such as Morgan Stanley, JPMorgan and Goldman Sachs has indicated a pickup in investment banking activity.
Instability in the Technology Sector
However, the technology sector has shown some volatility. ASML disappointed by failing to meet quarterly order expectations. However, an outstanding report from Taiwan Semiconductor Manufacturing (TSM) revived optimism in the sector, reinvigorating artificial intelligence-related trading.
Technical Outlook
S&P 500 (Ticker AT: USA500) has been moving in a sideways range initiated in May, which was pierced as of September 18 to new highs returning to the long-term trend that can move the index up to 6,000 points with a current high of 5,886.35 points. The control zones show a value in the zone of 5,471 points precisely within this lateral range, sustained by a support at 5,398 points where it has bounced twice. The RSI indicates a slight overbought of 65.18% which could indicate a continuation of the index's growth. The golden crossover indicator indicated an entry from August 13. Golden crossovers occur when the 50-day SMA crosses above the 200-day SMA, indicating a definite uptrend. This trend shows no signs of ending at the moment, so the bullish expansion may last at least until the issuance of the next nonfarm payrolls and fed adjustments.
Looking Ahead
This week is anticipated to be a key one, with a series of earnings reports from major companies, including electric vehicle manufacturer Tesla. These results could significantly influence the performance of the S&P 500 and other stock indices.
The combination of an upbeat macroeconomic outlook and positive financial results suggests that the S&P 500 will continue its upward trajectory.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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