Advertisement
Advertisement

S&P 500 Trying to Recover Ahead of Federal Reserve Meeting

By:
Christopher Lewis
Published: Mar 15, 2022, 15:29 UTC

The S&P 500 initially started falling in the futures market during the Asian trading on Tuesday but has turned back around to show signs of life. At this point, the market looks as if it is going to rally back into resistance.

S&P 500 Trying to Recover Ahead of Federal Reserve Meeting

In this article:

The S&P 500 has initially pulled back just a bit during the trading session again on Tuesday but found buyers once New York came online. That being said, there is a lot of noise above and we are paying close attention to the Federal Reserve and the statement that comes out on Wednesday. After that, we have the press conference and people will be paying attention to whether or not the Federal Reserve is going to be dovish or hawkish with its attitude. If it stays as hawkish as people are betting on, it could very well be negative for the S&P 500. On the other hand, if it becomes a little bit more dovish, that might be reason enough for the S&P 500 to rally for the short term.

S&P 500 Video 16.03.22

There are a lot of factors out there that suggest that the S&P 500 needs to fall. It is very likely that the United States is heading towards a recession, and the rate of change in growth does not look very promising. Furthermore, we have to worry about the major companies in the United States bringing down estimates, which of course works against the value of stocks in general. At this point, it looks like we are still in the process of deflating the massive bubble that we had been in for 13 years.

The Federal Reserve has been pumping the markets full of liquidity, and if that cheap money starts to disappear, that will continue to weigh upon the markets.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement