Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

S&P 500, Nasdaq and ASX powered by more certainty as Powell cemented 25 basis-point rate hike

S&P 500, Nasdaq and ASX were back by the return of risk appetite after the Federal Reserve Chair, Jerome Powell, cemented the view of a 25 basis-point rate hike.

Source: Bloomberg

The global stock market shrugged off the haze after Federal Reserve Chair Jerome Powell’s speech on Wednesday, which introduced more certainty over the US central bank’s next move. While acknowledging the effect of the Ukraine war as “highly uncertain," Powell confirmed the need to tackle the fastest-growing inflation which has not changed in 40 years.

The Federal Reserve Chair made it clear that he is “inclined” to back a quarter-point interest-rate hike this month but did not rule out a more aggressive move if inflation comes in too hot. The US’s February data on consumer prices will be released on Thursday 10 March, five days before the next FOMC meeting. The reading would be the final stone to cement the rate hike decision.

Nasdaq

The tech-heavy Nasdaq index was back by the return of risk appetite and jumped over 1% on the day. The price is moving toward the week-high level supported by a weekly ascending trend line. Near-term support sits at the 20-hours MA around 141016. Pressure comes from the 100-hour MA, which, if broken through, could open the door to the high on 17 February, looking at 14583.

Nasdaq Hourly Chart

Nasdaq Hourly Chart Source: IG

S&P 500

S&P 500 surged 1.86% by the end of the Wednesday trading session. The daily chart shows that the index has confirmed a breakout from the downward moving channel and has eyes on the next challenge. The low from the end of January around 4283 should be the imminent support insight. If the price manages to overcome the pressure from the 20 days MA, the next test will be 4485.

S&P500 Daily Chart

S&P500 Daily Chart Source: IG

ASX 200

The Australian stock market enjoyed its second day of gains on Thursday. The 4-hour chart shows the price is facing the 100-MA after successfully jumping above 20 and 50 MAs. The level of 7172 would be a major test for the index as the price has been pushed back from this level for the past five weeks (according to the weekly chart). If the index succeeds for the sixth try, we can expect the ASX to climb towards 7240 for the near term. Next support is looking at 7097, where the black and green line sits from the 4-hour chart.

ASX Hourly Chart

ASX Hourly Chart Source: IG
ASX Weekly Chart Source: IG

Take your position on over 16,000 local and international shares via CFDs and trade it all seamlessly from one account. Learn more about trading share CFDs with us, or open an account to get started today.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.