S&P 500 Forecast: Will Rate Cut Speculation Elevate US Indices to Record Highs?

Stock futures steadied on Monday, with investors eagerly waiting for potential rate cuts following recent comments from Federal Reserve Chair Jerome Powell. Powell's remarks have invigorated market sentiment, pushing equities closer to record highs. Wall Street stays focused on the Fed's next moves, with many predicting rate cuts as early as September.

Key Stocks Under Scrutiny

• Boeing: Shares dropped over 1% after NASA chose SpaceX over Boeing's Starliner for astronaut returns from the ISS.
• PDD Holdings: Plunged 16% post disappointing second-quarter earnings amid increased competition.
• BJ’s: Stock rose over 1% following a JPMorgan upgrade.
• Planet Fitness: Advanced by 1.5%, supported by bullish ratings.
• Petrobras: Gained 2.3% after an upgrade from Morgan Stanley.
• SolarEdge Technologies: Surged over 6% after leadership changes.

Market Reactions to Powell's Comments

Powell's statements worked up varied market responses. His hints at possible rate cuts fueled optimism but analysts find themselves divided.

Market Forecast

The outlook remains cautiously optimistic as traders measure the potential for rate cuts against upcoming economic data. Despite S&P 500's projected gains, strong economic news could lead to fluctuations. Investors must stay alert to impending economic indicators and Fed communications.

Technical Analysis of E-mini S&P 500 Index

Traders watch key points: support at the 50-day moving average at 5535.90 and the all-time high of 5721.25. As the trend rises, concerns lie with how and when the high will be tested.