Fed Chair Powell held a speech at the Economic Club of New York on Thursday. Although nothing new had been said regarding interest rates increases and inflation, still, he noted that jobs and economic growth needs to be affected in order to bring the inflation toward the targeted 2%. As US Treasury yields were rising toward levels last seen in a down of 2008 financial crisis, the US equities continued with their correction to the downside.
The S&P 500 started the week around 4.390 but during the whole week the market sentiment was pessimistic, bringing the index 2.4% lower as of the end of the week, ending it at level of 4.233. Clear oversold momentum has not been reached, before the Friday's market close, leaving some space for the downside in the coming week. The support level might be found around the 4.200 level. A short correction to the upside might be probable in the week ahead, but some substantial move should not be expected. It would rather be a short move toward 4.270.
The S&P 500 started the week around 4.390 but during the whole week the market sentiment was pessimistic, bringing the index 2.4% lower as of the end of the week, ending it at level of 4.233. Clear oversold momentum has not been reached, before the Friday's market close, leaving some space for the downside in the coming week. The support level might be found around the 4.200 level. A short correction to the upside might be probable in the week ahead, but some substantial move should not be expected. It would rather be a short move toward 4.270.
