The S&P 500 is maintaining its upward trend and set to end the week on a bullish note, trading near the 5,250 level. It has shown robust growth in the first quarter of 2024, set to be its best performance since 2019.

It should be noted that the recent data indicates a surge of 10% in the index, signaling a significant upward trend. Similarly, other major indices such as the Dow Jones Industrial Average are up by approximately 5.5%, while the Nasdaq Composite has recorded a gain of roughly 9.3% over the quarter. This bullish momentum shows positive market sentiment and underscores investor optimism.

However, the S&P 500’s impressive surge was fueled by various factors, particularly the anticipation of a smooth shift in the US economy as people are now expecting interest rates to stay steady instead of dropping, it’s creating a feeling of more stability and confidence in the economy’s future.

This change is leading more people to want to invest in stocks, which is driving up demand and causing the S&P 500 to reach new record highs. Investors are feeling good because they think the economy will slow down a bit but not too much, which is boosting confidence in the market and making stocks look even more appealing.

Israel’s Conflict with Gaza and Its Potential Impact on S&P 500

On the geopolitical front, the ongoing conflict between Israel and Gaza is making the market uneasy. This instability could affect the S&P 500 index, which measures the performance of major US companies. As tensions rise and violence persists, investors might get more nervous, causing the market to go up and down.

Moreover, the reports of civilian casualties and humanitarian issues in Gaza make things worse, raising concerns about how the conflict could impact stability in the region and financial markets worldwide. This was seen as a key factor that kept the lid on any additional gains in the S&P 500 index.

S&P500 Technical Outlook