SPX was up 0.74 percent on Thursday, March 10, as the market remained volatile due to the Ukrainian-Russian conflict.
- The S&P 500 index dropped 0.4 percent, closing at 4,259.52 points, its fifth decrease in six days.
- On Wall Street, stocks fell as markets remained choppy due to geopolitical worries.
- The geopolitical situation will weigh on the index in the upcoming days.
S&P 500 fundamental forecast
Stocks dipped on Thursday as investors were concerned about the geopolitical dispute between Ukraine and Russia on the global economy. The S&P 500 index fell by 0.4 percent to 4,259.52.
Big tech businesses were among the market’s strongest hitters. Companies that make chips and software have seen their stock prices plummet. Micron Technology and Advanced Micro Devices dropped 4.7 percent and 4.1 percent, respectively.
Amazon rose 5.4 percent after announcing a 20-for-1 stock split and approving a $10 billion stock buyback program.
Russian-Ukraine talks ended in a stalemate
Negotiations between the Russian and Ukrainian foreign ministries ended with no progress on a cease-fire or a safe passage for residents fleeing Mariupol.
Meanwhile, Ukraine’s President, Volodymyr Zelensky, has said that he will no longer push for NATO membership, one of Russia’s claimed motives for invading the country. Instead, according to reports, Zelensky is willing to negotiate a diplomatic solution to the hostilities triggered by Moscow’s invasion of Kyiv.
Putin price hike
Furthermore, after the consumer price index set a new 40-year high of 7.9% in February, President Joe Biden dubbed it “Putin’s price hike.”
On Thursday, White House press secretary Jen Psaki doubled down on criticizing Russian President Vladimir Putin for skyrocketing US inflation.
Psaki also warned that costs could rise but that this was only a transitory condition that would pass.
What about the oil?
Since Russia invaded Ukraine on February 24, West Texas Intermediate crude has gained more than 14%, while Brent crude has risen over 15%. On the other hand, oil prices have dropped in the last two sessions.
WTI and Brent fell more than 12% and 13%, respectively, on Wednesday. WTI declined another 1% to roughly $106 per barrel on Thursday, while Brent fell 1% to near $109 per barrel.
Points to Ponder
Inflation fears are also weighing on market sentiment. Still, confidence that the Fed will overcome the crisis, bolstered by global oil producers’ willingness to combat the supply shortage, appears to have maintained the recent upbeat mood.
It’s worth mentioning that the US Consumer Price Index (CPI) hit a new 40-year high in February, matching the 7.9% YoY predicted the day before.
Moving forward, geopolitical headlines will be critical to monitor for clear guidance as the United Nations (UN) prepares to hold a Security Council meeting in response to Russia’s request.
S&P 500 technical analysis: looking for key levels
During the end of the session, S&P 500 is looking to stay above the 4250-mark. The index closed the day with a rise of 0.74%. The index is now trading at 4259.51.
The index is below its 100-day MA on the daily chart, and the RSI is pointing upwards. A break above 4300 would open the door to 4350. If it can cross that level, we’ll see the index touching 4400.
On the flip side, the next support for the index lies around 4200. If the index slips below this level, we can see a downward movement towards the 4150 level.