S&P 500 Index Price Nears 6,000 – Analysis and Key News

Uncertainty Persists

The Trump administration faces a major hurdle in executing its proposed policy agenda. The U.S. Court of International Trade (part of the federal judiciary) ruled that President Trump violated the law by imposing comprehensive tariffs in early April. As a result, the court deemed the tariffs illegal and ordered their removal. The Trump administration has stated it would appeal the decision, leaving it up to the Court of Appeals—and potentially the U.S. Supreme Court—to decide whether the administration can move forward with implementing the tariffs. This creates ongoing uncertainty about their enforcement.

As it stands, the administration must remove the tariffs within 10 days unless it files an appeal and the appeals court grants permission to reimpose them during the proceedings. Notably, the court’s decision applies only to the tariffs announced in early April and does not affect earlier measures, such as those on steel and aluminum or the initial tariffs imposed on China, Canada, and Mexico at the start of Trump’s second term.

It’s also worth recalling that President Trump began his second term by launching the Department of Government Efficiency, which led to the dismissal of numerous government employees. U.S. courts later ruled to reinstate those employees, finding that the president had exceeded his constitutional authority by terminating staff which means eliminating a government department without congressional approval.

Improving Risk appetite

Stock index prices and the U.S. dollar dropped significantly after the early April tariff announcement but later recovered sharply after the president suspended the measures to allow for negotiations and potential trade agreements with affected countries.

Markets responded positively to the court’s ruling. The S&P 500 and tech-heavy Nasdaq each rally was not driven only by the mentioned court decision but also by improved sentiment following Nvidia’s upbeat earnings report and optimistic remarks by its CEO about the AI chip market’s trajectory toward “exceptional growth.” Nvidia is expected to generate $45 billion in profits in Q2, despite challenges in the Chinese market.

S&P 500 Index Price Faces a Key Resistance Level

The S&P 500 index climbed to a multi-week high today, approaching the psychological 6,000 mark. Currently, the price moves within the trading zone located between 5,672 and 6,000. A daily close above the high end of this zone would signal strong bullish momentum and the possibility of a continued rally toward 6,200. However, the resistance level at the February 19 high of 6,146 should be considered.

Levels to Watch in a Downward Scenario

A daily close below 5,672 could trigger a corrective move possibly dragging the index down toward 5,446. In this case, the support levels at the 50-day moving average and the 5,492 should be kept in focus.

S&P500 price – Daily Chart

Chart Source: ADSS Platform