U.S. stock futures were flat ahead of Thursdays open, as investors start to fret over a lack of further stimulus from the U.S. Congress. Goldman Sachs has now slashed their GDP outlook over the government stalemate and the bank were also concerned about the rise in virus cases globally.
Economists at the U.S. investment bank have cut their GDP forecast for the fourth quarter by 50%, from 6% to 3%. The report said, “We think it is now clear that Congress will not attach additional fiscal stimulus to the continuing resolution. This implies that after a final round of extra unemployment benefits that is currently being disbursed, any further fiscal support will likely have to wait until 2021”.
The S&P500 was down 2.37% or 78 points on Wednesday and the weekly chart highlights a risk that the index could fall further, with the 3,000 level being a big figure target for the index.
The economic calendar today sees U.S. jobless claims released with analysts hoping for a 20k drop in initial claimants. There is also headline risk from Fed Chair Jerome Powell’s testimony, whilst there are two other Fed Governors due to speak alongside Treasury Secretary Steven Mnuchin.
S&P500 Index Technical Outlook
The S&P500 is trading near 3,242 and is looking to bounce in today’s session, however, the index is still at risk of falling further, with little support until the 3,100 50-day moving average and the big figure 3,000 just below. These levels would also be a 38% fibonacci retracement. If you want to polish your trading skills, the Investing Cube team is currently available to assist all levels of traders with a Forex Trading Course or one-to-one coaching.
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S&P50 Index Weekly Chart
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