SP500 Jumps Above 4,000 USD Again
09 September 2022
As the USD dumped on Friday, risk assets cheered, and US equity indices were trading more than 1% higher during the London session, with the benchmark SP500 index conquering the psychological level of 4,000 USD again.
Fed remains hawkish
James Bullard, president of the Federal Reserve Bank of St. Louis, claims that he has grown more in favor of a third consecutive 75 basis-point hike in interest rates and that Wall Street is underestimating the possibility that the Fed would maintain rates at higher levels in 2023.
‘’I was leaning toward 75, and the jobs report was reasonably good last Friday,” Bullard said in a Bloomberg News interview late Thursday in St. Louis. While the consumer price index may show progress when it’s reported next week, “I wouldn’t let one data point sort of dictate what we are going to do at this meeting. So I am leaning more strongly toward 75 at this point.”
Investors are fully anticipating another large move when officials meet on September 20-21, following 75 basis-point rises in June and July, after Chair Jerome Powell underscored on Thursday that officials will not back down in the fight to control inflation, which is at a 40-year high.
The SP500 index has managed to perfectly defend the medium-term uptrend line, offering solid buying pressure. The next target for bulls will likely be in the 4,170 USD zone, where previous highs and lows are aligned.
On the downside, the intraday support stands at 4,000 USD, and judging from the bullish momentum, the rally could continue throughout the day.