- The S&P 500 index is the 500 largest market cap and best-performing companies listed on US exchanges.
- Often called “the stock market”, the index is down 16.7% from its all-time highs, and short-term sentiment indicators point to "extreme market fear".
- The good news is the percentage of S&P 500 companies beating EPS estimates is greater than the five-year average (Factset data).
- While the annual inflation rate in the US came in at 8.3% for April. This is higher than the Fed’s 2% target, but down slightly from the 41-year high of 8.5% seen in March.
- According to a technical analysis, if the S&P 500 price breaks through the most recent support, the market index could plummet to 3240, which would be -14% decline and would firmly put us in a bear market.
For further details see:
How Low Will The S&P 500 Go? Market Scenario Analysis