Insights 
VT 
Key Points:
- S&P 500 rises to 5678.47 as Trump teases major UK trade deal, easing global uncertainty.
- Fed leaves rates steady, warns of rising risks from tariffs but avoids early cuts.
The S&P 500 surged higher on Thursday, gaining momentum into the session after US President Donald Trump announced a pending trade deal with a “big” country—believed to be the UK. The post on Trump’s Truth Social account spurred risk appetite across equity markets, lifting US stock futures and pushing the S&P 500 to a session high of 5678.48.
Despite the optimism, President Trump clarified that US tariffs on Chinese goods would remain in place during preliminary negotiations. This stance has injected some caution into the broader outlook. Markets remain wary of any sudden reversal in tone, especially given the combative rhetoric from both Washington and Beijing earlier in the week.
On the monetary front, the Federal Reserve held rates steady on Wednesday as widely expected. Fed Chair Jerome Powell maintained a cautious stance, saying there was no justification for cutting rates yet despite rising inflation and labour market pressures. Powell acknowledged the risks posed by tariffs but emphasised that policy should respond to hard data rather than forward-looking fears.
The broader US indices responded positively. The Dow closed up 0.7%, the Nasdaq rose 0.27%, and the S&P 500 added 0.43% in Wednesday’s session before futures extended gains overnight.
In corporate news, AppLovin jumped 13% in after-hours trading after outperforming earnings forecasts and revealing plans to divest its mobile gaming unit—a move welcomed by investors as a strategic shift back to its software roots.
Technical Analysis
The S&P 500 has staged an impressive intraday recovery, rebounding sharply from the 5578 support zone to set a new session high at 5678. The bullish drive was preceded by a brief consolidation phase and a dip toward the 5619 area, where buyers re-emerged with strength. The 5- and 10-period moving averages have realigned upward, signalling renewed bullish structure, while the MACD histogram has flipped firmly positive, with its lines showing a clean bullish crossover.
Picture: S&P 500 rebounds from 5578, surges to 5678 as bullish momentum reclaims control near resistance, as seen on the VT Markets app
This move clears near-term resistance and suggests continuation potential, especially if momentum sustains above 5670. However, the current push is approaching psychological resistance, and overextension may trigger minor profit-taking. A retracement toward 5640 could act as a healthy retest zone before bulls attempt further upside.
Cautious Forecast
Momentum remains positive, and the S&P 500 could test 5700 if trade optimism holds. However, traders should remain alert to potential pullbacks if the weekend’s US-China talks disappoint or if Trump’s UK deal lacks substance. Volatility could spike if tariff tensions escalate or if labour market data surprises on the downside.
