S&P 500 Index Sees A Recovery After The Monday Crash

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The start of this week has brought a massive price crash in the stock market, following the release and overnight success of Chinese AI startup, DeepSeek. However, by Wednesday, the recovery has already started, and the S&P 500 Index (US SPX 500 mini on FXOpen) has rebounded.

As of Wednesday morning, the index is trading above the early-week high. This indicates that the stock market managed to stabilize ahead of the US Federal Reserve’s decision at 10 pm GMT+3.

While interest rates are expected to remain the same, the focus is not on the rates, but rather on the Fed Chair, Jerome Powell. With Trump officially taking office on January 20, everyone is waiting to see what will be Powell’s stance.

He already claimed in the past that he has no intention of stepping down if Trump wins, even going as far as to point out that Trump also doesn’t have the authority to remove him from office. Trump previously said that rates should be lowered soon, so many are waiting to see if these words will come true.

What Is Next For S&P 500?

As for the S&P 500 Index, the technical analysis has revealed that the price is approaching 6,100 for the third time, after previously failing to break out twice. Experts are still bullish on the index’s price in the long term, stating that the trend remains unchanged. Furthermore, a breakout above 6,100 could lead this level to becoming a strong support.

On the other hand, Pwell’s recent remarks will lean hawkish, and experts have suggested that the markets may have a negative response to the situation. Furthermore, the price could also drop again, which would reinforce the downward channel, and enable the bear market to return in full force.

About Ali Raza PRO INVESTOR

Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, Business2Community, BeinCrypto, and more.