Vanguard S&P 500 ETF has been moving in an uptrend since the beginning of October 2021, and according to technical analysis “bullish” trend remains intact. Vanguard S&P 500 ETF advanced to its record highs above $422 on Friday even as rising labor costs and elevated inflation continue to worry investors.
All eyes on FED
Vanguard tracks the S&P 500 and gives you exposure to 500 of the most significant public companies in the United States. Vanguard S&P 500 ETF remains supported after the research company Refinitiv reported that third-quarter S&P 500 earnings should show a 34.8% rise from a year ago.
Strong corporate earnings boosted optimism around investors, and results from many big companies provided a strong start to the last quarter of the 2021 year. On the other side, the rising inflation, together with the world’s supply chains crisis, became a concern for investors.
Several FED officials also expressed concerns about high inflation, which could force the U.S. central bank to raise rates sooner than anticipated. The U.S. Federal Reserve will announce its decision on monetary policy on Wednesday, and according to estimates, FED will announce the tapering of its $120 billion in monthly bond purchases.
Fed Chair Jerome Powell said that the U.S. central bank is “on track” to begin reducing its assets purchases, which should be a step before lifting interest rates. A hawkish turn should positively influence the U.S. dollar, but besides this, some investors view the Fed’s stance as a vote of confidence for the U.S. economy.
The upcoming week will be busy; the U.S. will publish the official ISM PMIs and ADP survey, while the October Nonfarm Payroll report will take center stage.
The U.S. will publish the Nonfarm Payrolls
