S&P 500 Corrects Near 7092 as Middle East Uncertainty and Rising Bond Yields Weigh on Sentiment

However, Axios later reported, citing its own sources, that the US president had given Tehran three to five days to return to negotiations and present structured counterproposals, otherwise strikes on infrastructure would resume. He also stressed that the United States does not intend to abandon its key demands, primarily those related to Iran’s nuclear program and the issue of enriched uranium. According to the report, Supreme Leader Mojtaba Khamenei is barely involved in decision-making, while the official delegation and military leadership are unable to develop a unified position.

Market participants also remain focused on corporate earnings from index components. The day before, leading electric vehicle maker Tesla Inc. reported revenue of $22.39 billion, above analysts’ expectations of $22.28 billion, while earnings per share (EPS) came in at $0.410, beating the forecast of $0.363. At the same time, operating results from hardware and software giant IBM Corp. were also positive — revenue reached $15.92 billion and EPS stood at $1.91 versus forecasts of $15.61 billion and $1.81, respectively. Meanwhile, management at aerospace manufacturer The Boeing Co. confirmed revenue growth to $22.2 billion, above the expected $21.99 billion, while the EPS loss came in at $0.20, significantly better than the projected –$0.66. Results from energy equipment producer GE Vernova Inc. also showed strong performance, with revenue at $9.34 billion and EPS at $17.44 versus forecasts of $9.26 billion and $1.67, respectively.

The bond market is also reacting to the fundamental backdrop, with yields rising again: 12-month securities are trading at 3.708%, up from 3.640% last Friday, 10-year bonds at — 4.319% versus 4.245%, while 20-year and 30-year yields stand at — 4.909% and 4.921% compared with 4.854% and 4.872%, respectively.

The index’s top gainers are GE Vernova Inc. (+13.75%), Teleflex Inc. (+11.27%), Masco Corp. (+10.78%), Boston Scientific Corp. (+8.99%), and Micron Technology Inc. (+8.48%).

Among the biggest decliners are TE Connectivity plc (–9.10%), FMC Corp. (–7.44%), Equifax Inc. (–7.15%), Fair Isaac Corp. (–6.42%), and Booking Holdings Inc. (–6.00%).

Support and resistance levels

On the daily chart, the index is attempting to move away from the upper boundary of the descending channel at 6700.0–6300.0.

Technical indicators maintain a stable buy signal, which is strengthening amid the local correction: the fast EMAs on the Alligator indicator are moving further away from the signal line, while the AO histogram is forming corrective bars in the buy zone.

Support levels: 7020.0, 6730.0.

Resistance levels: 7190.0, 7480.0.

Trading scenarios and S&P 500 forecast

Long positions may be opened after the price consolidates above 7190.0 with a target at 7480.0. Stop-loss: 7100.0. Implementation period: 7 days or more.

Short positions may be opened after the price consolidates below 7020.0 with a target at 6730.0. Stop-loss: 7110.0.