Powell’s Speech Sends S&P 500 to Key Target Levels

The markets reacted strongly to Federal Reserve Chair Jerome Powell’s latest speech, highlighting both labor market risks and inflation dynamics amid ongoing tariff concerns.
While Powell emphasized that labor market and inflation risks remain skewed to the upside, his overall tone was dovish, hinting that further declines in job openings might eventually contribute to rising unemployment.
These remarks fueled continued downside pressure on the U.S. dollar and provided a clear roadmap for S&P 500 price targets, which were precisely anticipated by market analysis levels.

Table of Contents

1. Powell’s Speech: Key Highlights
2. Dollar Reaction: Extending Losses
3. S&P 500: Price Targets and Market Levels
4. Why the S&P 500 Could Reach Higher Targets
5. Conclusion

Powell’s Speech: Key Highlights

During his address, Powell emphasized:

• Labor Market Risks: Skewed to the upside, signaling that the labor market remains tight.
• Inflation Risks: Also skewed to the upside amid the tariff situation.
• Monetary Policy: Quantitative tightening end is near.

This combination of factors reflected a cautiously dovish tone, providing the market with clues about future Fed policy and potential rate adjustments.

Dollar Reaction: Extending Losses

The dovish undertone of Powell’s speech led to further losses for the U.S. dollar, as traders began pricing in the possibility of future rate cuts. Market sentiment shifted, reflecting:

• Outflows from the dollar toward risk assets.
• Increased appetite for equities and other higher-yielding assets.

This movement reinforced the broader market trend and set the stage for the S&P 500 to approach critical price levels.

S&P 500: Price Targets and Market Levels

MRKT’s price projections had accurately identified specific target levels for the S&P 500, which aligned perfectly with the price action following Powell’s speech. Before reaching the new upside target, the index was consolidating at a previously marked pullback zone, once again confirming the precision of MRKT’s analysis.

By selecting the option “What would push the price here?”, MRKT highlights the primary drivers that would drive the asset to that target:

• Dovish Fed Expectations: If Powell's tone was dovish, this would support more demand into the risk assets and outflow form the US dollar..

Ultimately, MRKT’s price levels delivered with remarkable accuracy, underscoring the effectiveness of combining technical precision with macro-driven market insights..

Conclusion

Powell’s speech reinforced that, while inflation and labor market risks remain skewed to the upside, the Fed’s dovish undertone is driving both dollar weakness and S&P 500 rallies.
Market price levels predicted the movement accurately, demonstrating the power of combining macroeconomic insight with technical analysis.
Traders should continue monitoring Fed signals and key support/resistance levels, as these will remain critical for navigating the near-term market landscape.