The start of the new week brings no respite to the US stock market. Pre-session trading saw a sell-off of key technology stocks, including Alphabet (-2.6%), Tesla (-4.0%), Microsoft (-1.5%), Apple (-1.3%), Meta (-2.65%), Nvidia (-2.6%), and Amazon (-2.1%). Analysts are also beginning to revise their expectations for the S&P 500's growth this year. JP Morgan suggests that its earlier conservative forecast of 6,500 points may not materialize due to high volatility and uncertainty.
Forecasts for the year-end S&P 500 level among Wall Street strategists have ceased to rise, a rather negative sign from a historical perspective. Source: Bloomberg Finance LP,
From a technical standpoint, very weak signals are also observed. The US500 crossed below its 200-session average last week and is currently trading approximately 1.3% below it. On Friday, the 250-session average was also tested, currently at 5,670 points. A similar situation was last observed in October 2023, when the US500 fell by about 4% below the 200-session average and 2.5% below the 250-session average. In April 2022, a prolonged descent below these averages was seen, with the US500 remaining below these technical indicators for nearly a year.
The US500 has lost approximately 7.5% from its peaks in the second half of February and has fallen below 5,700 points. Source: xStation5
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