Will S&P 500 reach all-time high?

Will S&P 500 reach all-time high?

2020-08-10 • Updated

It has been climbing up for the 9th day in a row. Look for trade ideas.

Why is it important?

Let’s start with the fundamentals. It’s a common fact that the S&P 500 is a so called benchmark of the US economy. Thus, when the US economy gets under threat, the S&P 500 tends to dip down. As you might know, US-China trade talks are scheduled for this week. This agreement is widely watched by all the market participants, as it will impact the overall sentiment.

What happened?

Today Bloomberg reported that China imposed sanctions on US officials in reply to the US actions over Hong Kong's leader Carrie Lam. It definitely adds more pressure on the Sino-Americans tensions. However, investors shrugged off that news and continue buying the S&P 500. Maybe this year is so filled with negative news that people’s reaction has weakened.

Another reason, which may weigh on the US economy, is disputes between Democrats and Republicans over the fiscal stimulus package. The US president Donald Trump made executive orders to speed up their agreement. However, discussions continue. And, again, it seems it doesn’t bother investors so much.

Wells Fargo Securities thoughts on S&P

According to Chris Harvey, head of equity strategy at Wells Fargo Securities, one thing still can stop the S&P 500’s rally. It is negative interest rates, which officials may impose again. Wells Fargo Securities set the price target at 3 388 for the S&P 500. Harvey claimed that the stock index may reach this level before further contraction as elections in November may add headwinds.

Some analysts believe that the Federal Reserve is interested in depreciating the US dollar. Therefore, multinational corporations will get a boost as people will try to escape from the currency, which is losing its value every day. So, the S&P 500 should gain on that.

Technical tips

The S&P 500 is approaching the all-time high at 3 390. All the moving averages are in descending order, that indicates a really strong uptrend. If the price goes above 3 390, it will surge to the key psychological mark at 3 500. Nevertheless, the move below the low of August 7 at 3 325 may push the stock index lower to the low of August 4 at 3 270. Follow further news!




Should you buy Apple in 2021?
Should you buy Apple in 2021?

Revenue from IPhone sales dropped in 2020, but Apple focuses now more on its services, which will bring the company more benefits in 2021.

Biden’s presidency will boost Tesla
Biden’s presidency will boost Tesla

Good news for Tesla! The tech giant is going to benefit from Biden’s presidency as the new president stated the objective to make the USA the leader in electric vehicle production.

All attention to Biden's inauguration
All attention to Biden's inauguration

Joe Biden will take the post of president of the USA on the morning of 20 January 2021. Trump is going to skip the inauguration. What will be the market reaction? Let’s find out!

Latest news

Oil dropped on weak demand
Oil dropped on weak demand

Oil fell below $52.00 because investors expect a weaker oil demand amid rising Covid-19 infections and new lockdowns.

USD strength on risk off mood
USD strength on risk off mood

Asian equity markets traded cautiously after the mixed lead from Wall St where most indices stalled at record levels

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


Manager will call your number

Correct number

Your request is accepted

Manager will call your number

Next callback request for this phone number
will be available in {time}

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera