SP 500 – Daily Chart
The price of the S&P 500 is finding resistance again at the 5,882 level and that could open up a potential correction. The first support comes in at 5,784 with further levels at the 5,680 mark.
A recovery in chip stocks boosted the market to touch new highs Taiwan Semiconductor Manufacturing, eased chip demand worries after it reported a better-than-expected 54% increase in Q3 net income and raised its target for 2024. Stronger-than-expected economic news on weekly jobless claims and retail sales also supported the market and improved the outlook for a soft landing.
Weekly initial unemployment claims unexpectedly fell by -19,000 to 241,000, showing a stronger labour market than expectations of an increase to 259,000. US September retail sales rose 0.4% m/m, stronger than expectations of +0.3% m/m.
Middle East tensions continue to be a negative factor for stocks, while the upcoming election poses a risk of volatility after markets started to price in a decisive victory for Donald Trump.
Further Q3 earnings may determine the near-term direction of stocks according to Bloomberg Intelligence, with S&P 500 companies expected to report an average of 4.3% from a year ago, down from the 7.9% growth projected in July. Markets are now discounting the chances for a November rate cut of 92% for 25 basis points.