Categories: Business & Economy

S&P 500 continues to drift higher as U.S. government shutdown wards off downside risks

Fundamental Overview

The S&P 500 remains supported by the current US government shutdown as it wards off downside risks. In fact, the delay in key US data like the PFNP keeps monetary policy expectations stable and doesn’t give Fed members much.

As long as the Fed continues to cut interest rates and maintains a dominant reaction function, the stock market will remain biased toward the upside of expectations for steady growth. What could trigger a larger pullback is a hawkish fix in current interest rate expectations. This will, however, require strong labor market data, or a clear re-acceleration of inflation.

S&P 500 Technical Analysis – Daily Time Frame

S&P 500 daily

On the daily chart, we can see that the S&P 500 is consolidating above the previous all-time level around the 6,756 level which acts as support. Buyers will likely continue to step into support with defined risk below to continue targeting new highs. Sellers, on the other hand, will want to see the price decline to target a pullback into the next 6,611 level.

S&P 500 technical analysis – 4 hours

S&P 500 4 hours

On the 4-hour chart we can see that we have a minor ascending trendline defining the bullish momentum which also adds confluence to support at 6,756. Again, this is where we can expect buyers to step in to continue targeting new highs, while sellers will look for a break lower to target a drop in the 6,680 level.

S&P 500 technical analysis – 1 hour

S&P 500 1 hour

On the 1-hour chart, there is not much else we can add here as buyers will continue to rely on support, while sellers will wait for a break lower to stack for new lows. The red lines define the average daily range for today.

Upcoming catalysts

Today we have the minutes of the FOMC meeting. Tomorrow we feed Chairman Powell Powell and the US Unemployment Claims Report (if the shutdown is lifted). On Friday, we wrap up the week with the University of Michigan Consumer Sentiments Report.

Source link

Michael Johnson

Recent Posts

NBA annual survey says Thunder will repeat, Nuggets’ Jokic as MVP

Tim BontempsOctober 9, 2025, 11:46 a.m. ETCloseTim Bontemps is a senior NBA writer for ESPN.com who covers the league and…

3 weeks ago

Donald Trump to present Ben Carson with the Presidential Medal of Freedom

Former Secretary of Housing and Urban Development Dr. Ben Carson, recently named National Nutrition Advisor at the U.S. Department of…

3 weeks ago

Federal health insurance premiums will see another significant increase in 2026

Federal employees and annuitants are heading into another year of sharp increases in their health insurance premiums, both under the…

3 weeks ago

Drake’s Lawsuit Against Kendrick Lamar’s ‘Not Like Us’ Dismissed by Judge

A federal judge on Thursday (Oct. 9) dismissed Drake's defamation lawsuit against Universal Music Group over Kendrick Lamar's "Not Like…

3 weeks ago

10/9: CBS Morning News – CBS News

10/9: CBS Morning News - CBS News Watch CBS News Israel and Hamas agree to first phase of Gaza peace…

3 weeks ago

Letitia James, who sued Trump, indicted for alleged bank fraud: NPR

New York Attorney General Letitia James speaks during a news conference January 8, 2025 in New York. Michael M. Santiago/Getty…

3 weeks ago