Emmanuel OchayiThe US equity market experienced a delicate dance as it cautiously retraced its steps into familiar territory, settling into recent trading ranges.
All eyes are firmly fixed on the Federal Reserve (Fed) this week as investors prepare for the latest interest rate decision due on Wednesday from the Fed, casting a shadow of uncertainty over the financial markets.
The Standard & Poor’s 500 (S&P) relinquished its grip on the $4,450.00 handle, closing the day near $4,430.00 with a minor dip of 0.22%. Meanwhile, the NASDAQ tech composite index tumbled by 0.23%, shedding 32 points to close at $13,678.00, and the Dow Jones Industrial Average (DJIA) retreated by 0.31%, down 105 points to conclude Tuesday at $34,517.00.
As stocks wavered, treasury yields ascended, with the 2-year note reaching 5.092 and the 10-year note rising to 1.365.
READ ALSO: US Promises Support For Nigeria’s Economic Growth
Wednesday’s focal point is the forthcoming interest rate announcement from the Fed, with expectations leaning toward the central bank maintaining current interest rates.
However, the Federal Open Market Committee (FOMC) is also set to unveil its latest economic projections and revised interest rate outlook. Investors will be closely monitoring the subsequent FOMC press conference for any shifts in the Fed’s communication strategy.
In terms of technical analysis, the S&P 500 is at a pivotal juncture, testing the limits of an ascending trendline.
Should the bearish sentiment persist, a further decline could test the previous swing low below $4,350.00. Conversely, bullish momentum faces resistance from descending upper bounds around the $4,500.00 threshold.
The 100-day Simple Moving Average, currently at $4,375.00, may offer support to renewed bullish sentiment in the index.
Follow Us