STOCK MARKET OUTLOOK: S&P 500 INDEX CLIMBS AS CONSUMER CONFIDENCE IMPROVESS&P 500 value motion is extending its advance throughout early m
STOCK MARKET OUTLOOK: S&P 500 INDEX CLIMBS AS CONSUMER CONFIDENCE IMPROVES
- S&P 500 value motion is extending its advance throughout early morning commerce on Tuesday
- Inventory market positive aspects look more likely to proceed in short-term amid prevailing danger urge for food
- Shopper confidence information simply launched improved to 127.3, topping median forecast
The S&P 500 is buying and selling on its entrance foot shortly after the opening bell in New York. Shares look good a buoyant on the heels of prevailing urge for food for danger, which is probably going getting one other enhance from US shopper confidence information simply launched. Headline shopper confidence crossed the wires at 127.3, which improved from 120.Zero in Could and topped the market forecast in search of a studying of 119.0. The current state of affairs and future expectations subcomponents each climbed from 148.7 to 157.7 and 100.9 to 107.0, respectively.
S&P 500 INDEX PRICE CHART: DAILY TIME FRAME (28 DEC 2020 TO 29 JUN 2021)
Chart by @RichDvorakFX created utilizing TradingView
In keeping with different particulars within the newest shopper confidence report, the share of shoppers planning to buy houses, cars and main home equipment all rose. Demand for providers like journey appears to be like sturdy as properly with trip intentions additionally rising. This all possible stands to assist propel shopper spending and company earnings. In flip, with shopper confidence red-hot and consumption traits robust, it appears as if the US inventory market is primed to proceed chugging within the short-term.
To be truthful, nevertheless, sturdy financial exercise may encourage the Federal Reserve to maneuver ahead with taper timeline discussions. The chance of Fed tapering stays a possible headwind to danger urge for food and equities. Maintaining tabs on the S&P 500-derived VIX Index might be worthwhile for merchants as an increase within the VIX would possibly point out the market is trying to hedge in opposition to draw back dangers, which in flip, may even see the S&P 500 come beneath stress if the correct bearish catalyst comes alongside.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception
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