Last week the S&P 500 Index continued to be under pressure, dropping to its lowest levels since November 2025. The S&P 500 Index fell to $6,632 last Friday. This is a sharp drop from its year-to date high of $7700. This article examines the S&P 500 Index, its ETFs such as VOO and SPY and some of their top catalysts.
S&P 500 Index reacts to Federal Reserve Interest Rate Decision
The Federal Reserve’s interest rate decision will be made on Wednesday, and this is when the S&P 500 Index as well as its ETFs are likely to see a major change.
The central bank is expected to keep interest rates between 3.5% and 3.75% unchanged. The officials will send out a message on what we can expect in the coming year, now that US is experiencing stagflation.
The data released in this month revealed that there was a decline on the labor market, and the economy lost over 92,000 positions. In February, the unemployment rate increased from 4,3% to 4.4%.
A second report revealed that February saw an increase in the Consumer Price Index. In February, the headline Consumer Price Index (CPI) rose by 2.4% while core inflation increased 2.5%.
Analysts expect the bank to maintain its interest rate in the near future.
Earnings of top corporations
After a recent, highly successful earnings season the S&P 500 Index is now down. FactSet data showed the average growth in earnings of over 13% for the last quarter, which included popular companies like Nvidia, Apple, and most others.
The S&P 500 Index is not likely to be affected by the results of smaller companies this week. Dollar Tree and Aramark are scheduled to release their financial results on Monday before the market opens.
Elbit Systems (Lululemon), DocuSign (Okta), and Williams-Sonoma will all release numbers on Tuesday. Micron, Jabil and General Mills, however, will do so on Wednesday. Accenture, FedEx Darden and Planet Labs are the other major companies that will publish their figures this week.
Iran War continues to push crude oil prices up
S&P 500 Index is likely to react in response to the Iran War that continues. The war in Iran has driven crude oil to its highest levels for years. Brent and West Texas Intermediate have both reached $100.
The prices of natural gas, heating oils, and many other types of energy have increased. Fertilizer prices are also soaring, causing a boom in stocks of Nutrien, Mosaic, and other fertilizers.
S&P 500 Index will continue to fall if there are signs that war intensifies. Signs that the war will end, on the other hand are bullish to the stock market.
S&P 500 Index Technical Analysis
Daily timeframe charts show that S&P 500 Index is under pressure as it has been moving from crisis to crisis, which includes the problems in the credit market.
The index has dropped from $7,050 in February down to $6630. The index is now below both the 25-day and 50-day Exponential moving averages (EMA).
Stock has formed a round top. This is a bearish continuation signal that’s common in technical analysis. The stock is still slightly higher than the Fibonacci Retracement of 23.6% at $6,495.
The Relative Strength Index and Percentage price oscillator have both continued to fall in recent months.
The index is likely to continue its downward trend, and the next important target will be the Fibonacci Retracement Level of 38.2% at $6,178.
The post S&P 500 & VOO Stock: Top Catalysts to Watch This Week may be updated as new information unfolds
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