Second losing week on the US equity markets the S&P 500 ended 0.3% lower. The decline was mostly driven by technology stocks. Although inflation figures posted earlier in the week showed some stickiness around 3.2% y/y level, still there are some concerns over the PPI which rose 0.3% in a month, and a bit higher than the market was expecting. This puts investors into a question whether inflation might be more persistent in the coming months. Some analysts are commenting that mixed data might be an indicator of higher volatility in the coming period.
S&P 500 started the previous week around level of 4.520 and soon took the downtrend, ending the week at level of 4.464. With this move, the index reached the level from the beginning of July. This short reversal is indicating a potential for a slowdown in the week ahead, as investors might need some time to digest the current prospectus for the coming earnings season. A modest reversal is possible to the levels around 4.500, but a rebound to the 4.600 is highly unlikely at this moment, as well as a move lower from Friday's close.
S&P 500 started the previous week around level of 4.520 and soon took the downtrend, ending the week at level of 4.464. With this move, the index reached the level from the beginning of July. This short reversal is indicating a potential for a slowdown in the week ahead, as investors might need some time to digest the current prospectus for the coming earnings season. A modest reversal is possible to the levels around 4.500, but a rebound to the 4.600 is highly unlikely at this moment, as well as a move lower from Friday's close.
