S&P 500 Under Pressure Near 6,853 as Fed Succession Fears Shake Markets

In the days ahead, the index may remain under pressure and continue trading in negative territory after a sharp drop at the opening of today’s session. The sell-off was triggered by remarks from U.S. President Donald Trump, who named a potential successor to Federal Reserve Chair Jerome Powell. The candidate, Kevin Warsh, is widely known for his preference for low interest rates, support for balance-sheet reduction at the Fed, and a generally more stimulative approach to economic policy.

In practical terms, Warsh’s leadership could signal a faster shift toward a more dovish stance if economic growth slows or market instability intensifies. It could also open the door to a reduction in the Fed’s bond holdings and other assets, injecting additional liquidity into the banking system. While such a policy mix would support lending activity and help revive GDP growth, it would also raise inflation risks—something that has already fueled a noticeable spike in short-term volatility across equity and fixed-income markets.

Adding to the pressure, earnings reports from the energy sector disappointed investors. Exxon Mobil Corp. saw its annual revenue slip from $83.43 billion to $82.31 billion, while earnings per share rose modestly from $1.67 to $1.71. Chevron Corp., meanwhile, was hit hard by restrictions on Venezuelan hydrocarbon transactions, reporting revenue of $46.87 billion, down from $52.23 billion a year earlier, and EPS of $1.52 versus $2.06.

The bond market also reacted to the shifting macro backdrop. Yields on widely followed 12-month Treasuries edged down from 3.498% to 3.485%, while 10-year yields eased from 4.244% to 4.219%. Longer-dated paper followed suit, with 20-year yields slipping from 4.836% to 4.811% and 30-year yields declining from 4.889% to 4.863%.

Among the session’s strongest gainers were Deckers Outdoor Corp. (+19.46%), Verizon Communications Inc. (+11.83%), Charter Communications Inc. (+7.62%), and Air Products and Chemicals Inc. (+6.44%).

On the downside, the sharpest losses were recorded by KLA Corp. (–15.24%), Newmont Goldcorp Corp. (–11.49%), Western Digital Corp. (–10.12%), and Seagate Technology Plc. (–8.71%).

Support and resistance levels

On the daily chart, the index is attempting another leg lower within a broader descending channel bounded by 7250.0–6800.0.

Technical indicators are starting to cool their previously unstable buy signals amid the correction. The fast EMAs of the Alligator indicator are converging toward the signal line, while the Awesome Oscillator histogram is printing corrective bars in positive territory.

Resistance levels: 6970.0, 7230.0.

Support levels: 6790.0, 6530.0.

Trading scenarios and S&P 500 outlook

Short positions may be considered after a clear break and consolidation below 6790.0, with a downside target at 6530.0. Stop-loss: 6900.0. Time horizon: 7 days or more.

Long positions could be opened if the index regains strength and holds above 6970.0, targeting 7230.0. Stop-loss: 6880.0.