S&P500 supported by falling oil prices and easing inflationUS 500 (per 1.0)TRADENATION:US500TradeNationThe S&P 500 rallied +1.65%, finishing within 1% of its all-time high, as investors welcomed the US-Iran agreement and reduced fears of an oil-driven inflation shock. Key drivers: Brent crude fell nearly 5% to around $83/bbl, easing concerns about higher energy costs and stagflation. Lower oil prices improved the outlook for corporate profits and reduced inflation expectations. European equities also gained, with the STOXX 600 reaching a new record high. Risk sentiment remains positive, although markets are becoming more cautious as investors await full details of the US-Iran agreement. Overnight developments: The Bank of Japan raised rates by 25bp to 1%, its highest policy rate since 1995, and signalled more tightening ahead. Japanese bond yields moved higher, but global market reaction has been limited so far. S&P 500 futures are slightly lower (-0.08%) as traders lock in some gains and await further details on the Iran deal. For today's trading: The main bullish factor remains the sharp decline in oil prices. Markets will watch for the release of the US-Iran agreement details and progress on reopening the Strait of Hormuz. Any further fall in energy prices could support the S&P 500, while uncertainty around implementation of the deal may trigger some profit-taking after yesterday's strong rally. Bottom line: The S&P 500 remains supported by falling oil prices and easing inflation fears, but today's trading may be more cautious as investors wait for details of the US-Iran agreement and assess whether the recent rally can extend toward new record highs. Key Support and Resistance Levels Resistance Level 1: 7636 Resistance Level 2: 7700 Resistance Level 3: 7790 Support Level 1: 7450 Support Level 2: 7377 Support Level 3: 7313 The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. To the extent permitted by law, in no event shall Trade Nation (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk. Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.