The S&P 500 closed higher, ending the week at a notable gain after a strong jobs report underscored a resilient U.S. economy, hinting at a possible delay in Federal Reserve interest rate cuts. The index rose, with sectors like communication services, industrials, and technology leading with significant gains.

Robust Job Growth Fuels Optimism

The March labour report revealed a substantial increase in employment, with 303,000 jobs added, far exceeding the anticipated 200,000 and the previous 270,000. This surge in hiring, coupled with a drop in the unemployment rate to 3.8%, suggests economic strength, influencing the Fed’s rate strategy.

Tom Plumb of Plumb Funds highlighted the economy’s strength, noting its potential to grow without sparking inflation. This outlook, reinforced by the labour report, lessens recession fears and shifts focus from immediate rate cuts.

Earnings Performance Review: Recent earnings reports showed Paychex exceeding expectations with an EPS of 1.38 against a forecast of 1.37, while Lamb Weston Holdings missed an EPS of 1.2 versus the expected 1.45.

Upcoming Earnings Watch

The market anticipates key earnings reports, with Delta Air Lines expected to report an EPS of 0.3441 and JPMorgan projected at 4.19. These figures will be crucial in shaping the S&P500 price forecast and investor sentiment towards the S&P500.

This week, the S&P 500’s performance, bolstered by strong job data and corporate earnings, presents a positive outlook for the index, with the market keenly eyeing upcoming financial disclosures to gauge future movements.

S&P500 Price Forecast: Technical Outlook

The S&P 500 closed the week at 5204.35, reflecting a decrease of 0.95%. The pivot for SPX stands at 5213.47, with immediate resistance levels at 5264.22, 5296.67, and 5339.94. Support levels are identified at 5171.88, 5138.60, and 5102.82.

The Relative Strength Index (RSI) at 50 suggests a neutral market sentiment, while the 50-day Exponential Moving Average (EMA) at 5169.19 may provide near-term support. A break below the $5215 level indicates a potential bearish turn for the SPX.

However, if it remains above the $5170 mark, supported by the 50 EMA, the trend could lean towards bullish, with a downward break prompting a possible sell-off.