US 500 forecast: the index continues to rise and may change trend
The US 500 is recovering but remains in a downtrend. The US 500 forecast for today is positive.
US 500 forecast: key trading points
Recent data: US services PMI for December came in at 52.5
Market impact: the data is moderately positive for the equity market
Fundamental analysis
The services PMI index reflects how companies assess current business conditions, including demand, order volumes, employment, and overall activity dynamics. The 50 level separates expansion from contraction, so a reading of 52.5 indicates that the US services sector continues to expand.
For the US 500 index, this suggests that strong upward momentum from this release alone is unlikely, and the baseline reaction is closer to neutral or slightly negative if the market was expecting a stronger reading ahead of the publication. If market participants conclude that growth in services is sustainable and inflationary pressures may persist, bond yields could rise, which would typically have a restraining effect on the US 500.
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