{"id":18367,"date":"2025-05-08T04:59:01","date_gmt":"2025-05-08T04:59:01","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=18367"},"modified":"2025-05-08T04:59:01","modified_gmt":"2025-05-08T04:59:01","slug":"sp-500-rallies-amid-trade-hopes-and-fed-caution","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/sp-500-rallies-amid-trade-hopes-and-fed-caution\/","title":{"rendered":"S&P 500 Rallies Amid Trade Hopes And Fed Caution"},"content":{"rendered":"\n

The S&P 500 advanced sharply on Thursday, buoyed by renewed trade optimism following remarks from US President Donald Trump. Posting on his Truth Social platform, Trump hinted at a significant trade deal with a ‘big’ country, widely interpreted as the United Kingdom. The announcement spurred a risk-on mood across global markets, propelling US equity futures higher and pushing the S&P 500 to an intraday high of 5678.48.<\/p>\n\n\n\n

However, the optimism was tempered by Trump\u2019s clarification that existing tariffs on Chinese imports would remain intact during initial negotiations. This added a layer of caution, as market participants remain sensitive to the risk of deteriorating US – China relations.<\/p>\n\n\n\n

On the monetary policy front, the Federal Reserve kept interest rates unchanged on Wednesday, which was in line with expectations. Chair Jerome Powell struck a careful tone, acknowledging inflationary pressures and a tight labour market, but stressed there is currently no case for rate cuts. Powell also noted that while tariffs pose risks to the outlook, the Fed remains data-dependent and will not act on speculation alone.<\/p>\n\n\n\n

Markets responded positively to both the trade headlines and the Fed\u2019s steady hand. The Dow Jones Industrial Average rose 0.7%, the Nasdaq Composite gained 0.27%, and the S&P 500 closed 0.43% higher before futures extended gains into the overnight session.<\/p>\n\n\n\n

Technical Analysis<\/h2>\n\n\n\n

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.<\/p>\n\n\n

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Picture: S&P 500 rebounds from 5578, surges to 5678 as bullish momentum reclaims control near resistance, as seen on the VT Markets app.<\/figcaption><\/figure>\n<\/div>\n\n\n

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.<\/p>\n\n\n\n

Outlook: Bullish but Cautious<\/strong><\/h2>\n\n\n\n

While the technical structure remains supportive of further gains, headline risk looms. A sustained breakout above 5700 is possible if trade optimism continues, but sentiment could reverse swiftly should the proposed UK deal lack substance or US – China trade tensions reignite. Additionally, upcoming labour market data and any signs of economic softening could inject volatility.<\/p>\n\n\n\n

Create your live VT Markets accoun<\/a><\/strong>t and start trading now.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The S&P 500 advanced sharply on Thursday, buoyed by renewed trade optimism following remarks from US President Donald Trump. Posting on his Truth Social platform, Trump hinted at a significant trade deal with a ‘big’ country, widely interpreted as the United Kingdom. The announcement spurred a risk-on mood across global markets, propelling US equity futures Continue Reading<\/a><\/p>\n","protected":false},"author":92,"featured_media":18368,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-18367","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t