The S&P 500 remains rangebound overall but is seeing a bit of weakness in the early part of the Wednesday session.
S&P 500
The S&P 500 finds itself on the back foot to kick off the Wednesday session as traders continue to navigate a massive amount of headlines and influences from both within and outside of the index itself. Recently, one of the big stories has been interest rates being extremely high, with the 10-year yield right around the 4.80% level and oil breaking higher, even above $100 in the Brent market, as the U.S.-Iranian conflict escalates, causing a lot of fear in the market as well as expectations of the Federal Reserve to tighten monetary policy.
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The overall weakness isn't completely broad-based
There are a few standouts, with companies such as Meta up over 5% and ExxonMobil up 2.5%. That being said, consumer and rate-sensitive areas are weaker, with Amazon being one of the notable drags. This is something worth watching, as the consumer being weak would be a major drag on the US economy.
The situation is one that still sees negativity, but we are still very much in the same consolidation area that we had been in for the last several weeks. The 7600 level seems to be supported now that the 50-day is there. It makes sense that it becomes even more important. To the upside, the 7800 level continues to be a bit of a barrier, as sellers continue to defend it.
The uncomfortable combination in the markets right now is that the S&P 500 is near all-time highs while interest rates in the United States are sitting near three-year highs. This causes this dicey behavior. Furthermore, we get PPI on Thursday and CPI on Friday, so both of those could be market movers.
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