S&P 500 On Week Of 25 Sep 2023. Bearish This Week. Here's Why?

We have seen how U.S. indexes have performed before and after FOMC meeting where Fed announced rate shall remain unchanged but one more rate hike this year.

This has sent the market into RED as investors are concerned of higher and longer interest rates following Fed’s comments.

U.S. stocks was having some early gains but it gave up in the afternoon session with S&P 500 falling 0.23% on Friday because of concerns about higher interest rates after Fed Chair hawkish comments.

With the potential U.S. government shutdown impending and we will be expecting the PCE (personal-consumption expenditures) price index for August on Friday.

The core PCE, which excludes food and energy components is expected to be up 3.9% from a year ago. Do note that this is the Federal Reserve's preferred inflation gauge.

Stock futures edged higher in overnight trading Sunday (24 Sep 23) as the market is set to enter the last week of trading in September with big losses.

I would be expecting S&P 500 to have a small increase on the week of 25 Sep 2023, it could break below its key level this week, investors should be also closely monitoring progress on a budget resolution in Washington.

Lawmakers over the weekend expressed few signs of movement on a deal that would keep the U.S. government funded for the remainder of the fiscal year.

With some economic data (PCE) which is favored by Fed to make some decision on inflation, some corporate earnings. On top of these, what is important would be the challenge of a U.S. Government shutdown potentially hanging.

These factors could contribute to how investors sentiment should but I expect there are some stocks which could still make a good run this week.

Appreciate if you could share your thoughts in the comment section whether you think S&P 500 would end up in the RED or green on the week of 25 Sep 2023?

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.