The S&P 500 broad market index futures are
rising by 0.3% to 5475 points this week, continuing their recovery. To reclaim
its upside trend, the index needs to surpass the resistance at 5470-5490
points, which may take some time given the potential for optimism to wane.
There are, however, reasons for optimism this
week. The Federal Reserve’s preferred inflation gauge declined to 2.5% YoY as
expected, though the Core PCE, excluding food and energy prices, remained at
2.6% YoY, missing the expected 2.5%. This suggests that inflation risks are
still elevated.