US 500 forecast: the index set a new all-time high and began a correction
The US 500 index approached the 6,500.0 level, and with each new all-time high, the likelihood of a downward correction increases. Today’s US 500 forecast is positive.
US 500 forecast: key trading points
Recent data: US JOLTS job openings for June came in at 7.43 million
Market impact: the effect on the US stock market may be mixed, depending on the Federal Reserve’s interpretation of this data
Fundamental analysis
The JOLTS job openings figure reflects the number of available positions in the US and serves as a key indicator of labour market health. The current reading is 7.437 million, below both the forecast of 7.510 million and the previous figure of 7.712 million. This suggests weakening demand for labour and a gradual cooling of the economy. For equities, this may have a twofold impact. On the one hand, fewer job openings ease wage pressure and inflation risks, which increases the likelihood that the Federal Reserve will refrain from raising rates and could eventually resume rate cuts. On the other hand, it points to slowing economic activity, which raises investor caution.
For the US 500 index, the impact varies by sector. The technology and real estate sectors benefit as a more accommodative Fed stance makes funding more accessible and supports growth stocks. Meanwhile, the financial sector may see reduced profitability due to lower interest rates.
RoboForex Market Analysis & Forex Forecasts
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
Sincerely,
The RoboForex Team