S&P 500 (SPY) Remains Under Pressure As Traders Cannot Find Positive Catalysts

S&P 500 Attempts To Level Off At 3980

As there are not enough triggers for equities to recover from the recent sell-off, the S&P 500 is now trading close to the support at the level of 3980.

According to the ADP Employment Change report, which was just issued by the U.S., private firms gained 132,000 jobs in August as opposed to 268,000 in July.

The labor market is clearly slowing down, but because rising inflation is still the major issue, it is unclear if the Fed will pay heed to this slowdown.

Additionally, traders should be aware that the market-moving Non Farm Payrolls data, which will be issued on Friday, and the ADP Employment Change report often provide different image.

Technically, the S&P 500 is attempting to settle below the 3080 support level. The modest effort to recover encountered significant opposition close to the 4000 level. If the S&P 500 manages to close below 3980, there is plenty of potential for more downward momentum, and it may go swiftly below the next support around 3950.

After a strategic update, Bed, Bath & Beyond declines

Trading is turbulent today since there aren't any encouraging market triggers. After the significant sell-off in recent trading sessions, the selling pressure is, however, less fierce.

Following the publication of its strategy update, Bed, Bath & Beyond's stock is down 22%. The corporation will liquidate 150 outlets and eliminate 20% of its workforce. Bed, Bath & Beyond will begin an at-the-market offering campaign for up to 12 million shares of common stock to increase liquidity. The major cause of the sell-off is the impending stock offering.

Following the announcement of the company's third quarter fiscal 2022 results, HP is down 7%. Revenue forecasts were missed by the corporation, and guidance for the whole 2022 period was reduced.

Snap increased 10% after announcing that it will lay off 20% of its employees. Even if the news boosted Snap stock, investors should be aware that many businesses have already made layoff announcements, which will have a negative effect on employment reports in the coming months.