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S&P500 - New Developments
07.06.2022

There has been a lot of talk amongst market participants about whether the stock market will regain lost capital. Over the past month the SNP500 has increased by 3.26% but has since lost momentum. Due to the loss of momentum traders are contemplating whether the market will increase back to the previous highs of $5,398.00.

Over the past week, the index has actually declined by 1.38% and today’s pre-market price shows a decline of 0.75%. Although the index sees little volume outside market hours, meaning that buyers and sellers have a strong influence on the price, the pre-market price movement could still be used as an indication on sentiment, orders, and price condition.

Even with the recent bullish trend towards the end of May, the price has fallen short of significant price levels such as resistance points. It has also remained below moving averages, and the stochastic oscillator is currently crossed downwards.

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Below are some of the main price drivers of the SNP500:

Twitter

There is a possibility that the deal between Twitter and Elon Musk may not occur, according to reports. For two weeks, Elon Musk waited for information on various fake accounts from the social network and, without waiting for a response to his request, wrote an official letter of demand to the company's management, which he published through the US SEC (Securities and Exchange Commission). The corporation is legally required to provide the requested information, otherwise the transaction may be terminated. Although these developments have not yet been officially confirmed, Twitter stock is falling. It seems as though investors are hesitant to keep Twitter stock.

Amazon

One of the growth leaders amongst the 500 SNP stocks is Amazon. The retail giant had a 20:1 stock split yesterday, and its current price is just under $125. The classic stock split was initiated to lower the price of the stock, which became too expensive. With a lower stock price the company believes it will be able to entice more investors. Classic stock splits have also proven to be successful in the past with other companies such as Alphabet and Tesla. Investors are eager to see how the company progresses over the coming months.

Mcdonalds

McDonalds has recently come under pressure following the withdrawal of its restaurants from Russia, and with disagreements between its Russian partner, Mr. Govor. However, it seems like an agreement has officially been made over the past few days, providing potential support for the stock’s demand.

The sale agreement has already been approved by the Federal Antimonopoly Service (FAS), and a transaction has taken place. It should be noted that, since the 2nd of June, the authorized value of the company in Russia is 9.7 billion rubles. The restaurants are expected to resume operation in Moscow on June 12th, after undergoing a rebranding and menu changes.

The highest stock price increases in the SNP500 were seen with Stanley Black & Decker which increased by 5.79%, Generac Holdings which gained 5.75%, Enphase Energy which added 5.41%, and Marathon Petroleum with an additional 3.57%.

The largest declines were seen with Warner Bros Discovery which declined by 3.71%.

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