S&P 500 Eyes New High Amid Fed Rate CutsAs Fed Rate Cuts Loom, U.S. Economic Health May Determine Market Trajectory
The performance of stocks, bonds, and the dollar following the Federal Reserve's anticipated rate-cutting cycle could hinge significantly on the health of the U.S. economy.
The Fed is poised to commence a series of rate cuts on Wednesday, having previously raised borrowing costs to their highest levels in nearly two decades. Market expectations, as indicated by LSEG data, point to an approximate 250 basis points of easing by the end of 2025.
S&P 500 Technical Analysis:
The price is nearing its all-time high (ATH) and shows potential to break through and set a new ATH, driven by the impending rate cuts. The S&P 500 is expected to test the 5675 and 5707 levels. Sustained stability above this zone could propel the index to new highs around 5780 and 5820. Conversely, a downside move could be triggered by stability below 5643, targeting the 5584 level.
Key Levels:
Pivot Line: 5675
Resistance Levels: 5707, 5745, 5780
Support Levels: 5643, 5620, 5585
Trend Outlook:
Consolidation: 5643 - 5707
Upward Trend: Above 5675
Downward Trend: Below 5643