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Ukraines air force said it shot down 51 of 92 drones launched by Russia in a nighttime raid.According to the Telegraph: French President Emmanuel Macron could become a key figure in Europes talks with Putin on peace in Ukraine.April 5th news, despite another sharp sell-off in the U.S. stock market on Friday, Nike (NKE.N) shares bucked the trend and closed up 3%, making it the only component of the Dow Jones Index that rose. Nike was able to close higher thanks to key progress in tariffs. Trump said Vietnamese leaders expressed interest in reaching a new trade agreement with the United States to reduce tariffs on U.S. goods to zero. In response to trade and geopolitical issues, Nike has moved most of its production to Vietnam, but the Trump administrations new import tax policy may offset the benefits of this transfer. Whether Vietnam can reach a suitable new trade agreement with the United States has quickly become a key business performance and valuation catalyst for Nike.On April 5, California Governor Gavin Newsom posted a video on his social platform on April 4 saying that the Trump administration’s tariff policy "cannot represent all Americans." He has asked the California government to look for new opportunities to expand trade cooperation and said that "California is a stable trading partner."On April 5, Fitz-Gerald Group CIO Keith Fitz-Gerald said in the latest CNBC show that although he was frustrated by the recent sell-off of Tesla, he still believed in the companys long-term prospects. "I think if we look at FSD, we look at autonomous driving, we look at everything Tesla is involved in, if you take Musk himself out of the "equation" for a few minutes, you cant deny that this company continues to change the earth. So, this is one of the moments where I have to hold my nose (ignore the sell-off), and Im going to keep waiting anyway, and I hope that when the sell-off is over, I hold enough Tesla shares."

Ahead of the Fed: S&P 500 Index

Cory Russell

May 06, 2022 11:14


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When the FOMC meets later today, it is largely anticipated to raise interest rates by 50 basis points. It's also likely to declare that it'll start relaxing its $9 trillion balance sheet, decreasing it by $95 billion each month, with $60 billion in Treasures and $35 billion in MBS. Matt Weller's comprehensive FOMC preview may be seen here.


If the conference's conclusion is "as predicted," the S&P 500 may not react much, since there will be no forecast adjustments on growth and inflation until the June meeting. Given how low the big cap index has fallen for the month of April, we may see a "buy the fact" scenario. The press conference, on the other hand, may hold the key to the S&P 500's next move. 


For the next three FOMC sessions, rises of 50 basis points are expected. The S&P 500 might rise if Powell becomes more dovish and implies that this is too aggressive. This would imply lower rates for longer. However, if he hints at a 75 basis point hike at one of the Fed's next meetings, as St Louis Fed President Bullard has hinted, markets may continue to fall.

The Federal Reserve: Everything You Need to Know

Since the fall of 2020, the S&P 500 index has been climbing in an ascending wedge, reaching an all-time high of 4820.2 on January 4th. On January 18th, the big cap index broke below the wedge and traded to a near-term low of 4104.1 on February 24th. The price then jumped from 4135.9 to 4636 in the second part of March. 


However, the market dropped out in April, wiping out all of those profits. The S&P 500 hit a new bottom of 4062 on May 2nd, then rebounded to form a hammer on the daily period. This suggests a rebound is on the way. Price also maintained slightly above the 50% retracement line, which crosses at 4027, from the lows of October 30th, 2020 to the highs of January 4th. In addition, the RSI is diverging from price, indicating that a rebound in the S&P 500 is possible.