S&P 500 Ends higher Despite Iran Tensions

Wall Street indices finished higher today helped by increased geopolitical tension in Gulf of Oman that pushed crude oil prices higher and boosted energy stocks. The Dow Jones Industrial Average added 0.39% to 26,106, and the S&P 500 index rose 0.4%, to 2,891. The Nasdaq Composite Index finished 0.6%, higher to 7,837.13. The 10 year Treasury note yield fell 3.3 basis points to 2.096%. Investors’ expectations for interest-rate cuts gained ground ahead of the Federal Reserve’s meeting next week. Traders searching for direction as they follow the developments on the global trade war between the U.S. and China. I believe that the longer the trade war goes on, and tariffs are in place against China, the more likely is that the Fed will cut rates. Meanwhile European equities register big gains on the back of hopes for further economic stimulus in China.

S&P 500 snapped a two day losing streak holding above the 50 day moving average keeping the positive momentum despite the increased geopolitical tensions. The index needs to break above the 2,910, the high from June 11th in order to extent the rally to 2,956 the high from May 1st. On the downside immediate resistance stands at 2,870 the 150 hour moving average which if broken might accelerate the fall further towards 2,825 the 100 day moving average.

S&P 500 Daily Graph

S&P 500 Ends higher Despite Iran Tensions
S&P 500 Ends higher Despite Iran Tensions

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