Renewed Hope For The S&P500 as The Week Starts with an Upward Move

After a mid-July rally to a 6-month high, the household-name stock market index that tracks 500 large companies listed on stock exchanges in the United States tailed off, closing at 4,395.57 on Friday, creating an end-of-month damp squib within a market that investors had held a huge amount of confidence in for two weeks.

Today, however, a new lease of life has been breathed into the S&P 500, as it began the New York trading session this morning with a healthy upward direction to 4,415 by 9.30am Eastern Standard Time.

Looking at this today as the US market opened, analysts are keen to present their perspectives, one of which is that the current strength within the S&P 500 could be relatively short lived.

Credit Suisse, one of the world’s largest interbank dealers by market share, stated that its opinion is that investors may well continue to look for a “summer consolidation/correction” to emerge.

This contrasts considerably to analyses from early July, in which a degree of non-specific indications was made that it would go higher.

Interestingly, the big movers on the S&P range from top influential tech stocks such as Tesla and Microchip Technology to fashion brands including Ralph Lauren.

Tesla moved 3.75% this morning, whereas Ralph Lauren stock went up a sharp-suited 4.14%.

Whilst the analyses today differ from those two weeks ago, one thing is clear, and that is the presence of volatility, an aspect of the markets welcomed by traders which has been absent for some time.

Given the variation of sectors represented by the top movers on the S&P 500 today, it appears that volatility is across the board, not just driven by the ramblings of the usual social media-reliant big tech influencers.

Risk warning: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.5% of retail investor accounts lose money when spread betting or trading CFDs with ETX. You should consider whether you understand how spread bets or CFDs work and whether you can afford to take the high risk of losing your money. Authorised and regulated by the Financial Conduct Authority, with Firm Reference Number 124721.