S&P 500 Tumbles Amid Market Volatility, Tests Key Support Levels

The S&P 500 fell sharply Friday, with all major U.S. indexes closing lower.

Market Highlights

• Nasdaq led losses, down over 2%.
• S&P 500 sectors like tech and financials dropped more than 2%.
• Energy sector was the sole gainer, supported by crude oil prices rising over 4%.

Economic Indicators

The January U. Michigan preliminary sentiment fell slightly below estimates at 73.2 but showed rising inflation expectations.

Treasury Yields Surge

The U.S. 10-Year Treasury yield hit its highest level since November 2023, reaching approximately 4.73%.

Key Technical Levels

• The S&P 500 traded near 5,820, testing its 20-week moving average at 5,840.
• The index hasn’t closed below the 20-week moving average since November 2023.
• A gap from November 6 could fill at 5,783.44, with further support at the November 4 low of 5,696.51.

Global Markets

• Euro STOXX 600 dropped about 0.4%.
• Dollar, gold, and bitcoin gained, reflecting a flight to safety.

Energy Gains Amid Crude Rally

Crude oil surged over 4%, driven by concerns over potential supply disruptions from additional sanctions on Russia.

Key Takeaway

The S&P 500’s decline underscores growing economic uncertainty, with rising yields and energy gains shaping market sentiment.