Futures Steady After Wall Street Slump on Fed Rate Cut OutlookFutures Steady After Wall Street Declines on Fed's View of Fewer Rate Cuts
U.S. stock index futures edged higher on Thursday as investors assessed the Federal Reserve's revised projections, which include fewer-than-expected interest rate cuts and elevated inflation expectations for next year. These updates caused a significant sell-off on Wall Street the day before.
On Wednesday, the Fed announced its forecast of only two 25 basis point (bps) rate cuts in 2024, halving its previous projection from September. The central bank also raised inflation expectations for the early months of the incoming administration. These adjustments triggered the steepest daily declines in the three major U.S. stock indices since August.
S&P 500 Technical Analysis
The S&P 500 experienced a sharp decline of more than 3.5% due to the Federal Reserve's decision to reduce interest rates by only 25 bps. This decision created uncertainty and weighed heavily on investor sentiment.
Today, the U.S. GDP report is a key event that could significantly impact the market. The GDP growth rate is projected to decline by 2.8% compared to the previous period.
If the GDP data comes in below 2.8%, the market may turn bullish, potentially reaching 5971.
If the GDP data exceeds 2.8%, the bearish trend could continue, with the S&P 500 targeting levels of 5885 and 5863.
Key Levels
Pivot Point: 5932
Resistance Levels: 5971, 5988, 6020
Support Levels: 5885, 5863, 5837
Trend Outlook
Downward Trend: Likely to persist if the price remains below 5932.
Upward Trend: Potential recovery if the price breaks above 5932.
