Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
S&P 500 Stuck Between Key Moving Averages as Traders Eye Earnings, January Fed Meeting

S&P 500 Stuck Between Key Moving Averages as Traders Eye Earnings, January Fed Meeting

Brendan Fagan, Contributor


What's on this page

S&P 500, Tech Stocks, Federal Reserve, Treasury Yields, Goldman Sachs – Talking Points

  • S&P 500 sinks on rising US Treasury yields, mixed earnings sentiment
  • Only 1 of 11 S&P 500 sector groups positive on Tuesday, that being energy
  • Market participants remain on edge with earnings, January Fed meeting upcoming
Equities Forecast
Equities Forecast
Recommended by Brendan Fagan
Get Your Free Equities Forecast
Get My Guide

Major US equity benchmarks declined on Tuesday after U.S. markets reopened following the long weekend. The S&P 500 closed the session down 1.8%, while the Dow Jones and Nasdaq 100 declined 1.5% and 2.6%, respectively. The S&P 500 finds itself perched in a precarious position, with Tuesday’s session highs testing the 50-day moving average and the session lows testing the 100-day moving average. The 100-day moving average has proven to be support for the two notable dips during December, and bulls may look to this key indicator as a potential reversal point for the index.

U.S. Treasury yields rose sharply during the overnight session following the Bank of Japan’s first policy meeting of 2022. The 10-year U.S. Treasury yield traded back through 1.87%, building on a strong start to 2022. Notably, the 2-year Treasury yield rose to 1.10%, its highest level since February 2020. With yields across the curve pushing higher, equities were under pressure from the opening bell. Just one of the eleven S&P 500 sector groups finished positive on the day, with energy benefitting from surging oil prices. Disappointing trading revenues from Goldman Sachs saw the major investment bank’s shares sink roughly 7%.

US 10-Year Treasury Yield Daily Chart

Chart created with TradingView

Event risk remains high in the coming sessions, with major S&P 500 constituents Netflix, Bank of America, and UnitedHealth all set to report earnings this week. Of the 33 S&P 500 companies to report so far, roughly 70% have beaten their consensus earnings estimate(s). While 70% is a strong beat rate, it lags well behind last quarter’s figure of 81% (Figures according to FactSet).

A disappointing corporate earnings season could place additional pressure on the major U.S. indices, with economic data already hinting at a slowing economy. Consumer confidence, retail sales, and industrial production data have all come in below expectations recently, which may paint a worrying outlook for equities in the near-term. That being said, market participants will learn more about the trajectory of the economy at the upcoming January FOMC policy meeting.

S&P 500 Futures (ES) Daily Chart

Chart created with TradingView

Trade Smarter - Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

--- Written by Brendan Fagan, Intern

To contact Brendan, use the comments section below or @BrendanFaganFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.