S&P 500 sets new record

The US 500 set a new record last night, and this morning the market is continuing its advance ahead of the US jobs report at 1.30pm (London tome).

NYSE traders
Source: Bloomberg

The US 500 is trading at 1977, up 0.1% on the day as its bull run shows no sign of slowing down. Traders have a lot to focus on this afternoon, with the European Central Bank interest rate decision at 12.45pm, followed by the ECB press conference and non-farm payrolls at 1.30pm. Markets are not expecting a change to the base rate from the ECB, so the focus will be on the US jobs report where analysts expect an increase of 215,000 jobs added to the payrolls and for unemployment to remain unchanged at 6.3%.

Yesterday, Janet Yellen stated that monetary policy has ‘limited’ capability in addressing economic stability. The Federal Reserve will be looking at a broad range of economic indicators not just unemployment. This suggests to me that quantitative easing will remain in place for the foreseeable future even if the jobs report is strong.

The 50-day moving average of 1925 is providing support to the US 500, and if the market breaks 1980 the next target will be 2000.

Brenda Kelly and Chris Beauchamp are hosting a non-farm payrolls webinar at 12.45pm today, register here.

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