empty
18.02.2025 11:57 AM
Bullish trend under threat? Why Fed decisions could cool markets?

This image is no longer relevant

The US stock market opened cautiously after the holidays as investors are assessing the Federal Reserve's next moves and awaiting key economic reports.

Futures on major indices show a modest attempt to rise, but uncertainty remains about the market's direction. Investors are focused on the release of the FOMC meeting minutes and PMI reports, which will help gauge the US economic outlook.

Fed factor: rates remain unchanged

On Monday, Federal Reserve official Christopher Waller stated that the regulator is in no hurry to cut interest rates. He stressed that unless inflation data confirms the slowdown observed in 2024, the Fed may maintain its restrictive policy.

This statement cooled market expectations for an early rate cut, affecting stock index dynamics.

In addition to monetary policy, investors are watching corporate earnings. Major companies, including Arista Networks, Occidental Petroleum, Analog Devices, Walmart, and Constellation Energy, will report results this week. Growing interest in tech and energy sector earnings could increase market volatility.

Additionally, February PMI data for the US manufacturing and services sectors will be released. These reports will highlight current economic trends and potential growth risks.

S&P 500 seeks new highs

At the market open, the S&P 500 stood at 6,134, continuing its upward trend. Technical indicators signal overbought conditions, but there are no clear signs of a reversal yet.

The nearest resistance is at 6,180–6,200, where profit-taking may occur. Support is in the range of 6,080–6,050, and a break below could push the index down to 6,000.

Nasdaq 100: bullish momentum to continue?

The Nasdaq 100 trades near 22,209, maintaining its upward momentum. The nearest resistance is at 22,400, and breaking above this level could open the way to 22,600.

This image is no longer relevant

If buying pressure weakens, the index could retreat to support at 21,900–21,800. Oscillators indicate a possible slowdown in momentum, but the trend remains bullish.

What to happen: correction or further growth?

Despite last week's positive momentum, the market remains under uncertainty. FOMC minutes and economic reports will set the market's direction.

If the Fed confirms a cautious approach to rate cuts, bullish sentiment may cool temporarily. However, strong PMI and earnings reports could help indices hold their levels or reach new highs.

Investors should watch key support and resistance levels closely, as the coming days could shape the market's direction. Fundamental data, the Fed's stance, and investor reactions to uncertainty are likely to determine a future movement.

Natalya Andreeva,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Domestic Demand and Attractive Prices

The wave structure on the 24-hour chart for the #SPX instrument is generally easy to interpret. The global five-wave pattern doesn't even fit within the terminal window at the smallest

Chin Zhao 11:56 2025-05-27 UTC+2

Stock Market Update for May 27th: S&P 500 and NASDAQ Still Have Growth Potential

Following the most recent regular session, U.S. stock indices closed lower. The S&P 500 fell by 0.67%, while the Nasdaq 100 lost 1.00%. The industrial Dow Jones dropped by 0.61%

Jakub Novak 11:08 2025-05-27 UTC+2

Update on US stock market on May 27. Market picking up steam

S&P500 Snapshot of key US stock indices on Monday: Dow: -0%, NASDAQ: -0%, S&P 500: -0%, S&P 500 at 5802, with a trading range of 5400–6200. On Monday, US index

Jozef Kovach 10:40 2025-05-27 UTC+2

Trump changes his rhetoric, USD loses ground

The world is changing faster than the markets can blink. The dollar is rapidly losing ground amid a pause in the US-EU trade war. Nvidia is being forced

Аlena Ivannitskaya 13:05 2025-05-26 UTC+2

Stock Market Outlook for May 26th: S&P 500 and NASDAQ Return to Growth

During the previous regular session, U.S. stock indices closed lower. The S&P 500 fell by 0.67%, the Nasdaq 100 lost 1.00%, and the Dow Jones Industrial Average declined by 0.61%.However

Jakub Novak 11:50 2025-05-26 UTC+2

Update on US stock market on May 26

S&P500 US stock market turning higher Snapshot of major US stock indices on Friday: Dow -0.6%, NASDAQ -1%, S&P 500 -0.7%, S&P 500 at 5,802, range 5,400–6,200. Importantly, on Monday

Jozef Kovach 10:35 2025-05-26 UTC+2

Stock Market Buy and Sell Recommendations for May 26, 2025

Buy Recommendation: Freeport-McMoRan Copper & Gold (#FCX)Freeport-McMoRan is one of the world's largest producers of non-ferrous metals. On the daily chart, the correction has been completed, with the price consolidating

Laurie Bailey 06:59 2025-05-26 UTC+2

Update on US stock market on May 23. Correction underway

S&P500 Correction underway on May 23 Snapshot of major US stock indexes on Thursday: Dow -1.4%, NASDAQ +0.3%, S&P 500 0%, S&P 500 at 5,842, range 5,400–6,200. Thursday's session began

Jozef Kovach 14:53 2025-05-23 UTC+2

Market approaches its peak: final surge or new pullback?

Investors are increasingly sensing cracks in the foundation beneath them. This week's approval of a large-scale fiscal package by the Trump administration with promises of tax cuts and boosted military

Anna Zotova 13:05 2025-05-23 UTC+2

S&P 500 Forecast for May 23, 2025

In the daily timeframe, the price consolidates below the green line of the ascending price channel, with a target level 5908. This likely indicates preparation to break through resistance levels

Laurie Bailey 05:16 2025-05-23 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.