US500 Analysis – January-4-2024

On Thursday, US stock futures stabilized. This followed a period of strain in the previous session. The Dow and S&P 500 experienced a dip in regular trading on Wednesday. They fell by 0.76% and 0.8% respectively. This marked the third consecutive session of decline for the S&P 500. The Nasdaq Composite also saw a decrease, dropping 1.18%. This extended its losing run to four days.

Traders Rethink Fed Rate Cut Expectations

Out of the 11 S&P sectors, eight ended lower. Real estate, consumer discretionary, and industrials led this downward trend. On the flip side, energy stocks performed well as oil prices surged. This happened as the dollar and Treasury yields saw some increase. Traders scaled back their strong expectations on Federal Reserve interest rate cuts for the year.

The latest FOMC minutes offered little clarity on when potential rate cuts might occur. Fed officials recognized a high level of uncertainty about the economic outlook. They also left open the possibility of more rate hikes.

US 500 Analysis

The US500 is hovering above the $4,692 resistance. The Awesome oscillator indicator gives bullish divergence. Therefore, if the price can hold above the support, a rise to the 38.2% Fibonacci resistance seems likely.

US500 Analysis – January-4-2024 | 4-hour Chart