US Stock Market Plummets as Fed's Latest Rate Hike Triggers Major Indices Declines
The S&P 500 extends losses at the end of the trading week.
S&P500 Index Fails to Sustain Above $4000 Mark, Raises Concerns Over Market Stability
S&P Trades in a Bearish Channel on Daily Timeframe, Signaling Potential Downtrend
Stocks Continue to Tumble as Interest Rates Climb Higher
Index Plummets Following US Federal Reserve's 25 Basis Point Interest Rate Hike
The S&P500 index fell below 4000 points and is currently trading close to 3900 points. These declines were announced after the Federal Reserve raised interest rates to the ceiling of 5%.
Federal Reserve Chair Jerome Powell indicated that the bank may raise interest rates further if necessary, stating that inflation is still very high despite the decline in unemployment rates and the improvement in the job market.
Powell emphasized that the Federal Reserve would monitor data closely and use all available tools for future monetary policy measures. And although these statements sound quite dovish, US Major indices suffered losses. Perhaps it’s the broader sentiment of uncertainty and reaching a ceiling of 5% with expectations to go beyond that figure, will have further implications on borrowing costs and thus limit business performance and expansions.
The S&P500 is in a downward channel on the daily timeframe after failing to break resistance at $4050, which was the upper limit of the channel. leading a further decline towards $3900.
Support at 3800 may be tested as it still remains the strongest support area for the index, with potential for further decline to 3700/3660 if broken.
Alternatively, breaking resistance at 4050 could lead to a rise towards the February peak of 4194.