- Equities recover on Thursday despite yields rising.
- Oil continues to suffer despite supply fears.
- PPI is the highlight today, but risk is limited before next week.
Equities continued their rangebound trade on Thursday as markets recovered after five straight days of losses. Energy continued to slide on the oil price with XLE in the red and XOP (oil and gas producers) down over 2%. Technology and semiconductors were the best-performing sectors of the day.
S&P 500 (SPX) news
So far so quiet this morning as European markets snooze to the end of the week. However, that will change once the PPI is released from the US. Usually, PPI comes after CPI, but this time around it gets to take the lead and have its time in the sun. Expect some volatility to pick up, but moves are likely to be limited with next week looming large as get rate decisions from the ECB, Fed and CPI.
S&P 500 (SPX) forecast
SPX is still revolving around 3,946 with support also at 3,900. A big move post-PPI could see 4,031 tested, but it seems probabilities lie with fading any strong moves up or down.
SPX daily chart