The S&P 500 and Nasdaq Composite pushed higher after dovish comments from Fed Governor Christopher Waller, with both indices breaking above their 100-hour moving averages. The S&P 500 climbed roughly 0.47% and the Nasdaq Composite rose around 0.70%, shifting the near-term technical bias toward bullish.
Fed Governor Christopher Waller's dovish remarks gave traders a reason to buy stocks and sell yields. Waller said he sees signs that inflation pressures are easing. He still wants to see next week's PPI and CPI reports before the September 16 Fed rate decision.
Lower yields can cut borrowing costs and make stocks more attractive relative to bonds. They can also lift the value investors place on companies' future earnings, a dynamic that matters most for growth and technology stocks. That relationship doesn't hold every time, but it did today.
S&P 500 and Nasdaq extend gains
The rally lifted both benchmark indices. The S&P 500 rose about 0.47%, while the Nasdaq Composite gained around 0.70%.
Moving averages define the new bias
Moving averages give traders a reference point for direction and risk. Above a key moving average, the bias turns more bullish; below it, more bearish; between two, the picture is neutral.
The S&P 500's rally pushed the index above its 100-hour moving average at 7695, with the 200-hour moving average sitting below that at 7654. That puts the index above both averages, giving buyers more control. Staying above 7695 keeps the bullish break intact; a move back below it shifts the bias toward neutral, and a break under 7654 would weaken the picture further.
Nasdaq Composite price action followed a similar path. The index broke above its 100-hour moving average at 26,301, and today's high reached approximately 26,475, with the current price near 26,400. Holding above 26,301 keeps the bullish bias intact, with today's high standing as the next upside reference. A drop back below the 100-hour average would weaken the breakout and shift the bias toward neutral between the 100- and 200-hour averages.
Buyers have made their move on both indices. Now they need to hold the levels they've broken.
Source: InvestingLive
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