According to the Bank of America specialists, the US stock market is showing signs of a probable decline in the near future. As the experts believe, it will create an opportunity to purchase the S&P 500.
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S&P 500 News
Record purchases of US stocks by retail traders reversed S&P 500's decline — JPMorgan
As JPMorgan Chase & Co. notes, retail investors bought a net $4.1 billion in American stocks on Monday, reversing a 1% decline in the S&P 500 triggered by Moody's US credit rating downgrade last week.
20 May
Wall Street strategists consider US stock market rally overvalued — Yahoo Finance
A thaw in trade tensions between the US and China helped the S&P 500 index to rebound. However, according to Yahoo Finance, several Wall Street strategists are urging investors to be cautious as they consider the current rally to be overvalued.
19 May
Following Moody's downgrade of the US government's credit rating, there was a significant market reaction. The yield on long-term American Treasury bonds briefly surged past the critical 5% threshold, while stock prices and the dollar declined.
19 May
S&P 500 index drops again after Moody's downgrades US credit rating
The US stock market fell on the news that Moody's downgraded the country's credit rating. The rating dropped from the highest level of AAA to AA1 due to rising government debt and a higher interest burden. This is how the organization explained its decision.
19 May
A decrease of the indicator value may contribute to the fall in quotes of S&P 500.
16 May
According to Bloomberg, traders are no longer hedging against a potential drop in the S&P 500 index, betting instead on a rapid recovery after last month's slump. The agency notes that “greed has gripped the markets”, replacing previous fears.
16 May
Individual investors support US stock market — Bloomberg
The implementation of tariffs from US administration on April 2 worsen the situation on financial markets and diminished the market price of American stocks by $6 trillion. It happened due to massive dumping of stocks by hedge funds, Wall Street “smart money”, and other professional investors.
16 May
Fidelity fund manager invests in American stocks amid US-China trade truce
This week, Fidelity International's fund manager said she increased the share of US stocks in her portfolio, citing market optimism following the US-China trade truce.
15 May
Citi and JPMorgan willing to invest in underperforming S&P 500 companies for short-term gains
Citi and JPMorgan, two major Wall Street players, are willing to take risks by investing in shares of underperforming American companies. According to the strategists, this approach could allow the firms to secure quick, short-term gains.
15 May
US stocks drift ahead of US economic data release
US stocks are drifting on Thursday as investors are awaiting the country’s economic data release. According to the news agency, the Nasdaq index was down 0.02%, while the S&P 500 declined 0.13%.
15 May
The S&P 500 Index (Standard & Poor's 500) is one of the key indicators of the US stock market and overall economic health of the United States. It represents the stock performance of the country's leading corporations. This stock market instrument reflects the dynamics of different sectors and serves as a universal benchmark for investors and analysts.
Major factors that determine the value of S&P 500:
- Macroeconomic situation, i.e. the Federal Reserve's monetary policy plans, inflation rate, GDP growth rate, and employment figures. These parameters have a direct impact on the stock market.
- Financial statements reflecting the profits and revenue of major companies, stock performance of which is represented by the index. Strong results support the growth of quotations, while weak results contribute to their decline.
- Political environment, which includes the tax system, the level of government debt, and monetary reforms. Geopolitical events and government decisions also influence the behavior of traders.
- Market sentiment; the movement of this stock market index is largely determined by investors' expectations, their appetite for risk, and the strategies of major funds.
- Technology sector, especially regarding the development of new technologies, impact of IT companies and their role in the economy.
The S&P 500 is often seen as a gauge of US financial health. Its growth suggests positive expectations and investor confidence, while a decrease may signal risks of recession or crisis.
This index is used for both long-term investing and short-term trading. To forecast its movement accurately, it's necessary to take into account macroeconomic data, corporate reporting, and the overall state of the stock market.
