This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEAB20I9_M.jpg
Following the decision not to raise interest rates at this week’s meeting, the U.S. stock market fell, while Treasury 10-year yields increased. The recent labor market data also supported the belief that the Federal Reserve is likely to maintain higher interest rates for a longer period than initially expected.
Analysts expect the stock will trade in a “drop/chop” in the following weeks before the S&P 500 delivers a rally into year-end. They see the S&P 500 rallying all the way to 4,825.
“The weak September narrative continues playing out as expected, but long and intermediate-term uptrends remain intact. This is evidenced by 27% of SPX constituents above their 50-day MA, while 48% are above their 200-day MA,” analysts wrote in a report to clients.
“The SPX is back where it was four weeks ago along the 4,400 level, backing and filling within 6% of its YTD high (4,607) and support at the August ‘22 high (4,325).”
S&P 500 fell 1.6% yesterday, ending the day at 4,333. Based on analysts’ projections, the S&P 500 could gain over 11% before the end of the year.
