- S&P 500 breaks above the record high of 3,025 that was posted back in July 2019.
- A daily close above 3,025 will establish a strong bullish pattern in the S&P 500 index.
- The index posted 39 new 52-week highs and only 3 new 52-week lows.
- U.S - China trade optimism has fueled the bull rally on Friday.
- Next major movement expected after FED's announcement regarding rate cut next week.
The time for merely challenging the crucial resistance is over for the S&P 500 index. The market has officially printed 3,027 level that marks a break above its all-time high of 3,025. The index opened at 3,003.32 on Friday, October 25th, 2019. With a significant upward trend, the market posted a daily high of 3,027.19 and is currently trading at 3,021.71.
U.S – China Trade Optimism Has Fueled Today’s Upward Rally
The bull rally on Friday has been largely associated with the optimism circling the U.S – China trade negotiations. The U.S representative has recently announced that parts of the interim deal have been finalized with China with the Asian superpower pledging to purchase $40 to $50 billion of U.S agricultural products; a deal that has spread a wave of celebration in the American farmers.
While the bullish inclination is evident in the stock index, financial analysts have still recommended waiting for a daily close above 3,025 for it to be taken for granted.
On the business front, Intel Corp has been reported to be trading 7.2% higher that marks its best day since January of 2018. The hike in the stock has fueled .SOX (Philadelphia semiconductor index) that is currently trading at its all-time high. On the other hand, Charter communications Inc. was also up by 7.3% following the largely positive Q3 results.
The eCommerce giant, Amazon, however, has printed a drop of 1.5% owing to the revenue and profit forecast trailing the estimates. Officials at Amazon have highlighted fierce competition to be the reason behind today’s fall in share prices.
S&P 500 Posted 39 New 52-Week Highs
While Boeing and VF maker have also posted a considerable decline of 1.2% and 6.8% respectively, the S&P 500 index at large was reported to have made only three new 52 week low, while 39 new 52-week highs in total.
The economic data for October has hinted at a few shortcomings in the U.S economy, in light of which, the Federal Reserve is anticipated to announce rate cut for the third time this year in the upcoming week. The next major move in the stock indices and the long-term pattern is likely to be established after the FED’s announcement, as per the stock market analysts.
Other than that, Apple Inc, Pfizer Inc., Alphabet Inc., and Merck & Co Inc., are also expected to announce their quarterly earnings reports in the next week. The financial experts have, therefore, recommended the investors to keep an eye on such reports to devise their weekly strategies.