roboforex Market Fundamental Analysis by RoboForex

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US 500 forecast: prices approached resistance but failed to break through and reach a new all-time high

The US 500 remains in an uptrend, which is highly likely to become medium-term. The US 500 forecast for today is positive.

US 500 forecast: key trading points

• Recent data: the US Producer Price Index (PPI) came in at 0.9% in July
• Market impact: rising producer costs have a negative effect on the US stock market

Fundamental analysis

The US PPI for July rose by 0.9% from the previous month, well above the forecast of 0.2% and the previous reading of 0.0%. PPI growth is a significant signal, as it reflects higher producer costs, which may be passed on to the end consumer. Overall, this strengthens inflationary pressure and increases the likelihood that the Federal Reserve will adopt a more hawkish stance in monetary policy.

Higher financing rates, in turn, can negatively affect the equity market by making stocks less attractive than bonds and increasing borrowing costs for businesses. For the US 500 index, the effect of such data is likely to be restrictive. Stronger inflation expectations could trigger a correction in the index, particularly in rate-sensitive sectors.

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