S&P 500 (SPY) tries to gain more ground despite Powell’s comments

The S&P 500 is trying to continue its recovery

The S&P 500 is teetering between gains and losses today as leading technology stocks come under pressure once again. Apple, Alphabet and Amazon shares are down about 1%.

Today’s traders focused on upbeat comments from Federal Reserve Chairman Jerome Powell, who highlighted the importance of the Fed’s fight against inflation. Treasury yields rose, which was bearish on growth stocks and put some pressure on the S&P 500.

At the same time, it is worth noting that the demand for inventory is visible in the healthcare and financial sectors. For example, major banks such as JP Morgan, Citigroup and Morgan Stanley rose today by about 2%.

The S&P 500 failed to break above the 4000 level and retreated. Currently, the S&P 500 has settled between the support at 3950 and the resistance at 3980. In case the S&P 500 breaks below the 3950 level, it will gain more bearish momentum and move towards the next support level at 3915.

On the upside, the S&P 500 needs to break above 4015 for a chance of a sustained bullish momentum. A move above 4015 will open the way for a test of the next resistance level at the 20 EMA at 4035.

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Today Snap is up more than 7% as traders react to the internal memo sent by CEO Evan Spiegel. According to the memo, the company plans to expand its user base to 450 million by the end of next year.

Gamestop also got some support today, trying to break above the $26 level after the company revealed its new partnership with cryptocurrency exchange FTX. Gamestop stock has been under heavy pressure in recent weeks, and it remains to be seen whether the new crypto partnership will spark interest in the meme stock.

From an overall perspective, the market needs additional catalysts to continue its recovery. In all likelihood, trading will remain highly volatile before the Federal Reserve’s decision, which will be released on September 21. While currency traders appear ready to buy stocks after the big pullback, a hawkish Federal Reserve may curb their risk appetite.

For a look at all of today’s financial events, check out our financial calendar.

S&P 500 (SPY) Attempts to Gain More Ground Despite Powell’s Comments – Coinphony [SV]

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