S&P 500 price forecast: AI spending worries test 7,500 support
ITF Team1 min read
Tech weakness drags the S&P 500 as investors watch the 7,500 support level and 7,800 resistance amid AI‑related spending concerns.
The S&P 500 closed at 7,587 points on Oct. 30, slipping 1.19% as technology stocks struggled under doubts about the return on artificial‑intelligence investments. The index failed to break the 7,800 ceiling and retreated toward the 7,500 support zone, a level that analysts now consider vulnerable.
Tech drag and energy lift
- Technology shares, led by chips such as Nvidia and Intel, fell sharply, reflecting investor anxiety over heavy AI capex.
- Energy stocks rallied, buoyed by higher Brent crude near $120 and ongoing Middle‑East tensions that keep oil prices elevated.
- The S&P 500 Energy Index posted a constructive upside, breaking an inverted head‑and‑shoulders pattern and moving above the 1,075 level.
Underlying economic backdrop
- Industrial production of consumer durables has been on a downtrend since 2022, signalling weak consumption.
- New orders for non‑defense capital goods have surged since September 2025, driven by a boom in AI‑related spending.
- Freight volumes for consumer goods fell, while heavy‑industry freight rose on AI, defense and energy demand.
- Pending US home sales slipped to 11.3% in September 2026, adding pressure to construction‑related freight.
What traders are watching
- Whether the S&P 500 can hold above the 7,500 support level; a break lower could open the path to 7,300.
- If the index regains momentum to test the 7,800 resistance, a clear breakout may signal a short‑term rally.
- Oil price movement around the $120 barrier; a sustained breach could reinforce energy‑sector strength and support broader equity gains.
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This article is compiled from international market news for information only. It is not investment advice.