S&P 500 Hits a Record - But Is Everything Really So Positive?
As the S&P 500 chart shows (US SPX 500 mini on FXOpen), the index touched 6,990 yesterday, marking an all-time high for the first time. The psychological 7,000 level is now within close reach. Optimism may be driven by the start of the earnings season, which could confirm continued growth in corporate profits.
But is the outlook entirely positive?
From a fundamental perspective, several factors could raise concerns:
→ News surrounding a criminal case involving Jerome Powell. This may be perceived as pressure on the Fed Chair and a threat to the central bank?s independence, potentially undermining the investment climate.
→ The upcoming release of CPI data (scheduled for today at 16:30 GMT+3). A scenario in which the figures point to rising inflation cannot be ruled out, which could trigger a sharp sell-off in equity markets.
→ Risks of the US becoming involved in new military conflicts.
From a technical standpoint, bearish signals are also emerging on the chart.
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