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S&P 500 Index Hits 2025 Low Following Trump's TariffS&P 500 Index Hits 2025 Low Following Trump's Tariff Announcement As shown on the S&P 500 Index (US SPX 500 mini on FXOpen) chart, the benchmark US stock index dropped below 5,450 points for the first time in 2025. This decline reflects the US stock market’s reaction to the tariffs imposed by the White House on international trade. According to Reuters: → President Donald Trump announced a 10% tariff on most goods imported into the United States, with Asian countries being hit the hardest. → This move escalates the global trade war. "The consequences will be devastating for millions of people worldwide," said European Commission President Ursula von der Leyen, adding that the 27-member EU bloc is preparing to retaliate if negotiations with Washington fail. Financial Markets’ Reaction to Trump’s Tariffs → Stock markets in Beijing and Tokyo fell to multi-month lows. → Gold hit a new all-time high, surpassing $3,160. → The US dollar weakened against other major currencies. The S&P 500 Index (US SPX 500 mini on FXOpen) is now trading at levels last seen in September 2024, before Trump's election victory. Investor sentiment appears to have turned bearish, with growing concerns over the impact of Trump's tariffs, as fears mount that they could slow down the US economy and fuel inflation. Technical Analysis of the S&P 500 Index (US SPX 500 mini on FXOpen) The bearish momentum seen yesterday signals a continued correction, which we first identified in our 17 March analysis. At that time, we mapped out a rising channel (blue) that began in 2024, suggesting that selling pressure might ease near its lower boundary. However, Trump's policy decision has reinforced bearish confidence, and now the price may continue fluctuating within the two downward-sloping red lines. This suggests that the long-term blue growth channel is losing its relevance. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:SPXM
by FXOpen
Yearly Candle on NQ 2025I believe what we're seeing right now is simply the market printing the “open low” of the yearly candle. The recent dip seems driven by short-term fear surrounding the new tariffs, but in my view, this is just noise. Long-term, this sets up a bullish scenario. Businesses won’t adjust overnight—it takes time to shift operations away from high-tariff regions. But as that transition unfolds, we’ll likely see improved margins and stronger fundamentals emerge. From a technical standpoint, I’m watching for a key reversal after price revisits the order block. If we get that reaction, it could mark the beginning of a broader move higher. This looks like manipulation, not distribution. OLHC - Gavin NFA, DYOR
CME_MINI:NQ1!Long
by gavintradez
S&P 500 Analysis: Markets Start the Week on a Positive NoteS&P 500 Analysis: Markets Start the Week on a Positive Note A week ago, while analysing the S&P 500 index chart (US SPX 500 mini on FXOpen), we noted that the market had officially entered a correction phase, as the price had declined more than 10% from its February 19 peak. This drop was driven by mounting uncertainty over the potential economic damage caused by the Trump administration’s tariff policies in international trade. However, this morning, markets are showing signs of optimism following reassuring statements from officials over the weekend. According to Reuters: → Trump announced plans to hold talks with Chinese President Xi Jinping, while the U.S. Trade Representative is set to meet his Chinese counterpart this week. → The European Union has taken a conciliatory stance, delaying its initial countermeasures against the U.S. until mid-April. As a result, sentiment appears to have shifted towards optimism, with the S&P 500 index (US SPX 500 mini on FXOpen) trading approximately 4% above this month’s low. Technical Analysis of the S&P 500 Index (US SPX 500 mini on FXOpen) As noted on 17 March: → The price is forming an ascending channel (marked in blue). → The fact that the price has reached the lower boundary of the channel suggests that bearish momentum may be fading. Currently, we are witnessing an attempt at a bullish reversal from the channel’s lower boundary. From a bearish perspective, resistance may emerge around the 5750 level, where the price has previously reacted (as indicated by the arrows). From a bullish perspective: → Bears have lost control of the 5600 level. → A bullish gap at the start of the week indicates a significant shift in market sentiment. If positive news continues to emerge throughout the week, the S&P 500 index (US SPX 500 mini on FXOpen) could attempt a rise towards the median of the identified channel. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:SPXM
by FXOpen
S&P 500 : How Long Could the Stock Market Correction Last?S&P 500 Analysis: How Long Could the Stock Market Correction Last? Six days ago, we noted that the Nasdaq 100 had entered a correction phase. Now, the S&P 500 (US SPX 500 mini on FXOpen) has followed suit, closing more than 10% below its 19 February peak on Thursday, officially confirming a correction. Statistically, according to research by Yardeni Research: → Market corrections occur quite frequently—since 1929, the S&P 500 has experienced 56 corrections. → Only 22 of those corrections turned into bear markets, defined as a drop of 20% or more from recent record highs. S&P 500 Analysis: How Long Could This Correction Last? On one hand, Friday’s market rebound suggests that buyers are stepping in. On the other hand: → US Treasury Secretary Scott Bessent stated on Sunday that there are "no guarantees" the world's largest economy will avoid a recession. This came just a week after US President Donald Trump refused to rule out such a scenario. → The current correction has lasted 22 days so far, whereas historically, the average correction lasts 115 days and results in a 13.8% decline from the peak. Technical Analysis of the S&P 500 (US SPX 500 mini on FXOpen) The price is forming an upward channel around the median line, which alternates between acting as support and resistance (marked in blue). → Price action suggests that bulls are struggling to hold above the 6,100 level. In February, they failed to push towards the upper boundary of the channel. → Since the price has reached the lower boundary of the channel, there is a possibility that bearish momentum may start to weaken. However, if the price loses support at the lower boundary of the channel, this would be a bearish signal from a technical perspective, indicating the potential for a deeper correction in the S&P 500 (US SPX 500 mini on FXOpen). This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:SPXM
by FXOpen
1
S&P500 Channel Down good until cancelled.S&P500 / US500 is trading inside a 20day Channel Down that spearheaded the technical correction from last month's All Time High. The 1hour RSI is on a bullish divergence and within this pattern this has signalled a temporary rebound near the 1hour MA100 for a Lower High rejection. As long as the pattern holds, a tight SL sell position there is the most optimal trade, aiming at 5450. A crossing over the 1hour MA200, invalidates the bearish sentiment and restores the buying bias. In that case, take the loss on the sell and buy, aiming at 6040 (Fibonacci 2.0 extension). Follow us, like the idea and leave a comment below!!
CAPITALCOM:US500
by TheCryptagon
S&P500: Breaking out towards 6,210.S&P500 is neutral on its 1D technical outlook (RSI = 54.592, MACD = 11.130, ADX = 24.014) as it is ranging between the 1H MA50 and 1H MA200. This consolidation is taking place near the top of the Channel Down, a pattern almost identical with January's. When that pattern broke to the upside, it almost hit the 1.5 Fibonacci extension. Our short term target is just under this level (TP = 6,210). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US500Long
by InvestingScope
S&P 500 Index Sets Record HighS&P 500 Index Sets Record High As shown by the S&P 500 chart (US SPX 500 mini on FXOpen), the stock index: → has increased by approximately 3.5% since the start of the year; → surpassed its previous all-time highs set in December. Market participants’ optimism was driven by: → a strong start to earnings season and expectations of robust reports from major tech companies; → statements made by Donald Trump at the Davos forum, where the US president urged Saudi Arabia to lower oil prices and expressed the view that interest rates should be reduced. Overall, such measures are expected to foster economic growth. Reuters quoted Lindsay Bell, Chief Strategist at 248 Ventures: buyers "like the idea of interest rates coming down, of oil prices coming down. All in all, the market is optimistic the more they hear about Trump policies. We're just seeing a reflection of that optimism." Technical analysis of the S&P 500 chart (US SPX 500 mini on FXOpen) reveals: → At the end of 2024, price fluctuations formed an ascending channel (marked by blue lines). → The December dip appears to be a correction within the prevailing uptrend. Bears managed to push the price below the lower blue line, but only for about a week. → After breaking the correction channel (shaded in orange), bulls faced brief resistance (indicated by the arrow) at the 6040 level. → The RSI indicator is in the overbought zone and signals divergence. This suggests a minor pullback could occur, potentially testing the aforementioned 6040 level. Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:SPXM
by FXOpen
2
SPX 500 Returns to All-Time HighsAfter two days of Trump’s official inauguration at the White House, the market maintains a short-term optimistic bias. This has allowed the price to rise by more than 1.5% as expectations grow for low-tax policies that could potentially boost domestic consumption in the United States. Steady Trend: The growing wave of buying positions has brought focus back to the long-term trend that has persisted in the stock index for several months. However, the price will now need to confront the resistance zone at all-time highs to confirm the bullish bias in the coming sessions. RSI: At the moment, the RSI line maintains a significant upward slope and marks levels above the neutral zone at 50. However, it is approaching the inflection point near the overbought zone marked by the 70 level of the indicator. RSI oscillations near this zone could begin to trigger bearish corrections in the actual resistance as an imbalance of long positions starts to emerge. Key Levels: 6.082: The most important short-term resistance level, coinciding with all-time highs and the upper Bollinger Band. Consistent oscillations above this level could set a new record high and reinforce the formation of the long-term bullish trend. 5.963: A nearby support level, located in the middle of the current small lateral range, which could serve as a resting point for future bearish corrections in price. 5.847: The definitive support level, where the latest market lows coincide with the barrier marked by the 100-period moving average. Persistent price oscillations below this level could jeopardize the current long-term bullish bias and pave the way for a fresh wave of selling pressure. By Julian Pineda, CFA - Market Analyst
FOREXCOM:SPX500
by FOREXcom
S&P500 Only buy above this level.S&P500 is trading on a Channel Up and today crossed over the MA50 (1d) again. In order to confirm any bullish sentiment, it has to cross above the Falling Resistance coming from the previous high. If it does, it can technically follow the growth % of the previous bullish waves that was +7.15%. Trading Plan: 1. Buy if the price crosses above the Falling Resistance. Targets: 1. 6180 (+7.15% from the bottom). Tips: 1. The RSI (1d) has already crossed over its MA trendline. Already a strong bullish breakout. Please like, follow and comment!! Notes: Past trading plan:
CAPITALCOM:US500
by TradingBrokersView
S&P 500 Index Rises to Psychological LevelS&P 500 Index Rises to Psychological Level The US stock market experienced an upswing following the release of inflation data yesterday. According to ForexFactory: → The annual Consumer Price Index (CPI) matched expectations at 2.9%. → The monthly Core CPI came in at 0.2%, below analysts' forecast of 0.3%. Market participants interpreted this as a positive signal, leading to the S&P 500 index (US SPX 500 mini on FXOpen) gaining over 1% in the first 30 minutes after the data release. As reported by Reuters: → Concerns about inflation eased, reviving hopes for a potential Federal Reserve rate cut, buoyed by a strong start to the earnings season (which we will cover in more detail later); → However, the rally may be short-lived, as inflation in the US remains uncomfortably high and could increase further due to aggressive tariff and tax policies under the new Trump administration; → Analysts caution that the Federal Reserve's rate is likely to remain unchanged for some time. Technical analysis of the S&P 500 index chart (US SPX 500 mini on FXOpen) shows that since early August—when the Japanese stock market crash triggered concerns of a global recession, dragging US equities lower—the price has been in an upward trend, marked by a blue channel. The January mid-month low has provided a more precise point to define the lower boundary of this channel. From this perspective, traders should note that the current S&P 500 price has reached a resistance zone, which consists of: → The median line of the blue channel; → The psychological level of 6,000 points; → The upper red line, drawn through the local highs of December 2024 and January 2025, suggesting that the decline beginning on 18th December could be viewed as an intermediate correction within the blue ascending channel. This resistance area may serve as a key test of the bulls' determination to complete the correction and resume the upward trend. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:SPXM
by FXOpen
2
S&P500: Every January same rally starting. Target = 6,950.S&P500 is neutral on its 1D technical outlook (RSI = 48.738, MACD = -35.090, ADX = 24.753) but just turned marginally bullish on 1W (RSI = 55.182) today. This technically signifies the market's enormous upside potential on the long term. The 2 year pattern is a Channel Up after all and every January since 2023, a new rally starts which exceeds +20% in gains. As long as the 1W MA50 supports, the bullish trend will be dominant. We are aiming for another +21% rise like the previous Jan 2024 rally (TP = 6,950). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
TVC:SPXLong
by InvestingScope
2
S&P500: 1D MA50 hit after 50 days. Is it a buy?S&P500 just turned bearish on its 1D technical outlook (RSI = 44.346, MACD = 12.360, ADX = 37.705) as it hit yesterday the 1D MA50 for the first time since September 11th. The Channel Up since August is intact and each of its two previous Lows took place on the 1D MA100 and 1D MA200 respectively, so each time an MA period higher. The 1D RSI is also reversing on a similar pattern as those two Lows. Our Target is the top of the pattern (TP = 6,000). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US500Long
by InvestingScope
1
S&P500 Extremely well supported. This uptrend will continue.Just 6 days ago (September 10, see chart below) we gave the most optimal medium-term buy signal on S&P500 index (SPX) as the price tested and held the 0.5 Fibonacci retracement level: The price rebounded strongly and is imitating the 0.5 Fib bounces of the previous 12 months that all started very strong rallies (+10.50% the weakest!). This week we would like to go back to our long-term perspective on the wider time-frames (1W on this chart) as ahead of the Fed Rate Decision on Wednesday, we expect very high volatility that might cloud investor thinking and confidence to a strong degree. There is no reason to diverge from our long-term bullish outlook (yet) as the index remains extremely well supported on the 1W MA50 (blue trend-line), which was approached on August's low and was last time tested (and held) a year ago (October 23 2023). A Higher Highs trend-line guides S&P to higher prices, similar to every such trend-line since 2016. The 1W RSI has started to form a Bearish Divergence, which was effective only in early 2022 and the start of the Inflation Crisis. As long as the 1W MA50 holds, the Sine Waves show that this uptrend is far from over. Technically we should now see a continuation to around 5800 - 6000 and then a new medium-term correction. Our long-term Target is 6500, which based on the progressive nature of cyclical rises within this pattern (+63.50% then 105.00%), seems a modest one. ------------------------------------------------------------------------------- ** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. ** ------------------------------------------------------------------------------- 💸💸💸💸💸💸 👇 👇 👇 👇 👇 👇
TVC:SPXLong
by TradingShot
S&P500: This rally has just started.The S&P500 is bullish on its 1D technical outlook (RSI = 59.284, MACD = 37.100, ADX = 31.869) and is testing the 5,680 ATH R1 level. This is the 4H timeframe and as you see the current rebound was achieved on the 4H MA200. The 4H RSI is on the same levels as May 7th 2024 and November 3rd 2023, which were consolidations before a major Channel Up formation. Our Target is in tact (TP = 6,000). See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
TVC:SPXLong
by InvestingScope
3
S&P500: Rebounding on the 1D MA100.The S&P500 is recovering Friday's lost ground and turned neutral again on its 1D technical outlook (RSI = 46.331, MACD = -24.550, ADX = 22.750). Even though it needs to overcome the Resistance pressure of the 1D MA50, this rebound gives a very positive note as it is being performed on the 1D MA100, which last time was a bounce point on April 19 2024. If the August 5th rebound was a HL of a Bullish Megaphone, then now the index is starting phase 2 of the new Bullish Wave, much like the 1D MA50 bounce of May 31st. We are bullish with TP = 6000, on the -0.618 Fibonacci level for a HH. See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US500Long
by InvestingScope
FewEveryone senses there is something coming, but nobody knows what it is. Regardless the markets will correct massively, technically because we haven't had a 0.61 fib correction in a decade, secondly because the bags are too heavy and everyone is bagholding, we need to shake those who call themselves diamond hands at +50% price discounts, i.e. cheaper prices. Capital is excessively cheap, Attention is overpriced. Manual Labor is underpriced we are living in a bubble state, some call it 'the everything bubble'. Call me bubble boy, chicken little, i don't care. A Nuke is coming.
OANDA:SPX500USDShort
by MarketsCreator
1
S&P500: Don't expect any sizeable correction any time soon.The S&P500 index is on very healthy bullish levels on the 1D timeframe (RSI = 63.385, MACD = 146.190, ADX = 48.596) showcasing in the best possible way the bullish bias of the long term trend and pattern, which is a Channel Up. This month's pullback is perhaps the best buy entry we can have as in relative terms based on the 1W CCI, the index is printing a consolidation phase similar to August-October 2020. As long as the 1W MA50 is in support, we expect the Channel Up to gradually rise in the same manner as then and by early 2025 possibly hit the 1.618 Fibonacci extension (TP = 6,800). ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
TVC:SPXLong
by InvestingScope
Bad data is good data... but for how long?Following better-than-expected inflation print for April 2024, investors found once again an excuse for relatively bad data to be good for the market in anticipation of rate cuts, causing the S&P 500 Index (SPX) and other indices to soar to new all-time highs. However, just three or four months ago, the general expectations were for seven rate cuts in 2024, something we quickly ruled out when these assumptions emerged. After data in the first quarter revealed sticky inflation numbers, these expectations dropped dramatically to only one or two rate cuts by the year’s end. Thus, by now, it should probably be out of the question whether the Federal Reserve will continue to prioritize controlling inflation over unemployment, which has also been slowly rising. In fact, the unemployment rate rose to 3.9% last month, reaching the highest level since early 2022, when excluding the same print for February 2024. Yet, while the 0.5% increase from the lows does not seem significant, historically, a 1% rise in unemployment has been typically accompanied by a recession. Therefore, even though the rate of increase is slow, unemployment is moving in a concerning direction. Besides that, U-6 unemployment is growing much faster, and there are many other discrepancies in the labor market data, which could potentially hint at a much worse state of the economy that is being reported. Illustration 1.01 The monthly graph of the unemployment rate in the United States is shown above. Another interesting detail is that retail sales remained unchanged in April 2024 from the previous month, and the yearly change amounted to 3%, while inflation rose by 3.4% during the same period. In addition to that, the United States ISM PMI contracted last month, and expansion in the United States S&P Global Composite PMI eased. Again, while these are not outright horrible developments, the economic slowdown will likely become even more apparent in the coming months as the FED keeps a tight monetary policy for longer, putting additional pressure on economic activity and exacerbating the challenges faced by various sectors and consumers. With that, the question lingers over how much longer investors will continue to interpret bad data as good in anticipation of something that is not coming and will only serve to confirm the economy is really not faring that well when it comes. Illustration 1.02 One of the challenges in the current environment is debt servicing. This fact is strongly reflected in soaring delinquencies on credit card loans, which have nearly doubled since the Federal Reserve started the hiking cycle. Technical conditions Daily time frame = Bullish Weekly time frame = Bullish Monthly time frame = Bullish Please feel free to express your ideas and thoughts in the comment section. DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.
SP:SPXLong
by Tradersweekly
S&P500: Wait for the ideal level to rebuy.The S&P500 index is neutral on its 1D technical outlook (RSI = 44.135, MACD = 2.270, ADX = 26.567) despite the fact that it made a new All Time High, in fact turning the former R level into S. The uptrend is being supported by the 4H MA50 since the May 2nd breakout and the Channel Up presents a new low risk buy opportunity close to the 4H MA100, ideally when the 4H RSI approaches the 30.000 limit. We will wait for the opportunity to go long and target the top of the Channel Up (TP = 5,400). See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US500
by InvestingScope
S&P500: Bullish trend confirmed.S&P500 has turned bullish on the 1D timeframe (RSI = 58.980, MACD = 2.870, ADX = 28.757) as today it is trading and will most likely close over the 1D MA50 for the third day in a row. Having crossed over the LH, the index has invalidated the bearish sentiment of April and a new Channel up is emerging. If it capitalizes on the 1D MACD Bullish Cross, we expect the 1D MA50 to hold from now on as the medium term Support, just like the 1D MA100 held on the April 19th bottom. Buy and target the R1 level on the short term (TP = 5,275). See how our prior idea has worked out: ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
CAPITALCOM:US500Long
by InvestingScope
The SPX is at a critical junctureLast Friday, the SPX gapped up at the open and temporarily broke above the 50-day SMA during the trading session. Finally, yesterday, the SPX managed to close above this line of resistance, which is a positive development. However, a failure of the price to defend the ground above this level, now acting as support, for multiple consecutive days will be concerning. Similarly concerning will be the flattening of RSI, MACD, and Stochastic, which are in the process of reversing to the upside. Illustration 1.01 The image above displays the daily graph of the SPX and two simple moving averages. Yellow arrows highlight the initial rejection at the 50-day SMA on 29th April 2024 and the successful breakout on 3rd May 2024. Technical conditions Daily time frame = Slightly bullish Weekly time frame = Bearish *The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages. Please feel free to express your ideas and thoughts in the comment section. DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.
SP:SPXLong
by Tradersweekly
All you need to know about yesterday's FOMC meetingYesterday's FOMC meeting concluded with a decision to keep the monetary policy unchanged, leaving the federal funds rate at 5.25% to 5.5%. During the subsequent press conference, Jerome Powell outlined the solid state of the economy alongside heightened inflationary pressures. Notably, he disclosed plans to commence with the reduction in quantitative tightening starting from June 2024; per the statement, the cap on Treasury redemptions will be lowered to $25 billion per month from the current $60 billion per month. Market sentiment reacted positively to this news, with indices soaring during the chairman's address. However, a more hawkish tone regarding rate cuts was seemingly ignored at first when Jerome Powell admitted a lack of progress in taming inflation over the past few months, requiring the central bank to keep interest rates steady for longer; though, the chairman was swift to deny any prospects of future interest rate hikes. In summary, despite initial market enthusiasm following Powell's announcement, lingering concerns over inflationary pressures and the prospect of prolonged interest rate stability may continue to shape future market dynamics. Illustration 1.01 Illustration 1.01 shows the 1-minute graph of the SPX. The yellow arrows indicate the main events of the day. Important statements from Jerome Powel “The economy has made considerable progress toward our dual mandate objectives. Inflation has eased substantially over the past year while the labor market has remained strong and that’s very good news. But inflation is still too high, further progress in bringing it down is not assured, and the path forward is uncertain. We are fully committed to returning inflation to our 2 percent goal.” “Our restrictive stance of monetary policy has been putting downward pressure on economic activity and inflation, and the risks to achieving our employment and inflation goals have moved toward better balance over the past year. However, in recent months inflation has shown a lack of further progress toward our 2 percent objective, and we remain highly attentive to inflation risks.” “The labor market remains relatively tight, but supply and demand conditions have come into better balance. Payroll job gains averaged 276 thousand jobs per month in the first quarter, while the unemployment rate remains low at 3.8 percent.” “Inflation has eased notably over the past year but remains above our longer-run goal of 2 percent. Total PCE prices rose 2.7 percent over the 12 months ending in March; excluding the volatile food and energy categories, core PCE prices rose 2.8 percent. The inflation data received so far this year have been higher than expected.” “We have stated that we do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably toward 2 percent. So far this year, the data have not given us that greater confidence. In particular, and as I noted earlier, readings on inflation have come in above expectations.“ “We are prepared to maintain the current target range for the federal funds rate for as long as appropriate. We are also prepared to respond to an unexpected weakening in the labor market.” “Specifically, the cap on Treasury redemptions will be lowered from the current $60 billion per month to $25 billion per month as of June 1.” Please feel free to express your ideas and thoughts in the comment section. DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.
SP:SPX
by Tradersweekly
3