After the S&P 500 Index rose above the 7,800-point mark for the first time on August 13, the past trading week was followed by a correction down to the area of the daily EMA 20 (purple). A few points below the current price level, there are further horizontal support zones. First at 7,610 points: This is where the last all-time high is located, which was reached most recently in June. A few points below this price zone, at around 7.560 points, there is another strong support: This is where the daily EMA 50 (green) runs, as well as two important trend lines (see chart below).<\/p>\n\n\n\n Even though the S&P 500 Index itself managed to rise to a new all-time high, the prices of some sector ETFs are still trading below their peaks. In particular, the technology (XLK) and consumer discretionary (XLY) sectors, which are especially important in a bull market and considered offensive, recently showed strength again but remain below the highs of the past months. For the chances of a successful renewed rally to be good, XLK and XLY in particular should generate bullish signals and overcome the next resistance zones.<\/p>\n\n\n\n Fundamentally, the biggest headwind in the past trading week came from the US bond market. The yield on 30-year US Treasury bonds temporarily rose to as high as 5.34 percent, reaching its highest level since 2007. The yield on 10-year government bonds also increased significantly.<\/p>\n\n\n\n Rising bond yields are particularly problematic for highly valued growth and technology stocks. Consequently, semiconductor stocks in particular came under pressure. On Tuesday, the Philadelphia Semiconductor Index lost about 5 percent. Nvidia, for example, dropped 2.3 percent, while Micron lost around 7 percent.<\/p>\n\n\n\n An additional burdening factor was the renewed rise in oil prices. Stalled efforts to ease tensions in the conflict with Iran heightened concerns about supply bottlenecks once again. Brent crude became more expensive by around 6.4 percent on a weekly basis. Higher energy prices could slow down the decline in inflation and thus also influence the monetary policy of the US Federal Reserve.<\/p>\n\n\n\n Despite the strains, there is so far little sign of a significant slump in the US economy. On Friday, S&P Global's preliminary purchasing managers' index even showed an acceleration in economic activity.<\/p>\n\n\n\n The services PMI rose to 56.8 points in August, reaching its highest level since late 2024. The composite PMI even reached its highest value since April 2022 at 56.0 points. The data thus continues to point to solid economic growth.<\/p>\n\n\n\n The fundamental starting position for the stock market thus also remains fundamentally positive. Precisely for this reason, last week's correction should not be overestimated so far. Even UBS raised its year-end target for the S&P 500 to 8,100 points on Friday, citing, among other things, the continued robust corporate earnings and long-term growth surrounding artificial intelligence.<\/p>\n\n\n\n In the new trading week, Nvidia's quarterly figures and new inflation data are likely to set the direction. The market will pay close attention to whether Nvidia can once again meet the high expectations for growth in the AI sector. At the same time, the PCE price index, the US Federal Reserve's preferred inflation gauge, is on the agenda.<\/p>\n\n\n\n From a technical chart perspective, the overarching picture for the S&P 500 remains bullish for now. The focus is on the aforementioned support zones. From a fundamental perspective, the movement of US bond yields remains one of the most important influencing factors at present.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/08\/SPX_2026-08-23_10-15-39_fa9c9-1-1024x666.png\")
Cyclical market sectors in focus<\/strong><\/h2>\n\n\n\n
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Rising bond yields are causing headwinds<\/strong><\/h2>\n\n\n\n
![\"\"](\"https:\/\/www.captrader.com\/wp-content\/uploads\/2026\/08\/image-41-1024x446.png\")
US economy remains surprisingly robust<\/strong><\/h2>\n\n\n\n
Nvidia and inflation are coming into focus<\/strong><\/h2>\n\n\n\n