SPx (PPI and Powell )

Stock Index Futures Show Little Movement Ahead of Key U.S. PPI Data and Powell's Remarks

Federal Reserve Vice Chair Philip Jefferson emphasized on Monday that maintaining current interest rates is prudent until there's clear evidence that inflation is on track to meet the Fed's 2% target. Describing the Fed's policy stance as restrictive, Jefferson voiced concerns over the stagnant progress on inflation in the first quarter. "Given the slowdown in progress towards reducing inflation to our target, it's sensible to keep the policy rate within restrictive bounds, which is where it currently stands," he stated during an event at the Cleveland Fed.

U.S. rate futures currently reflect an 8.9% likelihood of a 25 basis point rate cut at the June FOMC meeting, and a 27.6% probability of a similar rate cut by the end of the Fed's July meeting.

Technically side:
The market is currently experiencing heightened sensitivity due to recent news events, with anticipation building for the upcoming Producer Price Index (PPI) data and a speech by Jerome Powell. Consequently, price fluctuations are expected to remain within a range between 5249 and 5177. It is plausible that the price could ascend to approximately 5237 or 5249 before commencing a downward trend targeting 5196, and potentially further declining to 5177. stability under 5218 means it will start a bearish trend.

Should the price breach the resistance level at 5268, a bullish scenario would be activated.


Pivot Line: 5224
Resistance Levels: 5249, 5280, 5302
Support Levels: 5196, 5177, 5150

Today’s expected trading range is between the support 5177 and the resistance 5249.