S&P500 growing expectation of further Fed tightening. US 500 (per 1.0)TRADENATION:US500TradeNationThe S&P 500 came under pressure after a notably hawkish Federal Reserve meeting, falling 1.21% as investors rapidly increased expectations for additional rate hikes. Markets are now fully pricing in at least one Fed hike by October after the updated dot plot showed half of policymakers expecting further tightening this year. New Fed Chair Kevin Warsh reinforced the hawkish message by emphasizing the Fed's commitment to restoring price stability and addressing its prolonged inflation miss. His comments provided little support for rate-cut expectations and strengthened the view that the Fed is prepared to tighten policy further if inflation remains elevated. Higher rate expectations weighed heavily on growth and technology stocks, with the NASDAQ down 1.34% and the Magnificent Seven falling 2.82%. Market breadth was particularly weak, with 429 S&P 500 stocks declining, the highest number of daily losers this year. Rising yields also pressured gold and Bitcoin, while the US dollar strengthened against all major currencies. However, sentiment improved significantly after the close when the US and Iran signed an interim agreement aimed at ending hostilities. The geopolitical relief has helped futures recover most of yesterday's losses overnight, reducing concerns about energy supply disruptions and supporting risk appetite. Trading Focus Today Fed hawkishness remains the main headwind for equities. Markets will watch whether geopolitical optimism can offset concerns about higher interest rates. Technology and other rate-sensitive sectors remain vulnerable if Treasury yields continue to rise. A sustained easing of Middle East tensions could support broader risk sentiment and help the S&P 500 stabilise after yesterday's selloff. Bottom line: The near-term direction for the S&P 500 will depend on whether improving geopolitical conditions can outweigh the market's growing expectation of further Fed tightening. The Fed remains the dominant driver, but the US-Iran agreement has provided an important positive catalyst for today's session. 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.