Weekly Stock Market Update & SPY Technical Analysis Markets shrugged off fears of rising inflation last week and continued to set records, pointing to the undeniable strength buyers have in the current environment. Although inflation didn’t increase on the consumer end, it did on the producers’ side. The Producer Price Index (PPI) rose to its highest level in three years, sparking fears that tariffs are beginning to work their way into costs. The initial reaction to the report was negative, but markets recovered as hopes for a ceasefire between Ukraine and Russia eclipsed the economic data. Perhaps because a ceasefire would bring global prices of food and energy down, making it an optimistic solution to inflation. Also on the economic...
Weekly Stock Market Update & SPY Technical Analysis Inflation is back in focus this week as markets brace for the latest Consumer Price Index (CPI) and Producer Price Index (PPI) reports. Recent data from the PCE report showed inflation climbing to 2.6%, its highest level in months, driven in part by tariffs, with projections pointing to further price increases as those effects persist. These two upcoming reports will provide a clearer view of price pressures from both the consumer and producer sides. Higher inflation pulls the economy further from the Federal Reserve’s 2% target, lowering the likelihood of a rate cut. While weak labor market data recently pushed the odds of a September cut above 90%, a renewed surge in...
Weekly Stock Market Update & SPY Technical Analysis The Volatility Index (VIX) spiked last week after the Federal Reserve decided to keep interest rates unchanged, pushing back against pressure from President Trump to cut them. Fed Chair Jerome Powell followed the announcement with a speech that struck a cautious tone, citing ongoing concerns about inflation and the economic impact of tariffs. His remarks added to investor uncertainty and triggered profit-taking across the broader market. Adding to the pressure was the latest Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation gauge, which ticked up for the second consecutive month. Rising inflation typically undermines the case for rate cuts, yet the probability of a cut at the September meeting remains high,...
Weekly Stock Market Update & SPY Technical Analysis Markets are getting ready to wrap up a very successful July, but the week ahead may be crucial to projecting how August’s sentiment will be. Between key economic data, tariff deal deadlines, and earnings reports from several large cap companies, markets have an important week ahead that could reinforce them at these record highs or make way for a pullback across overstretched names. On the economic front, here are the reports in focus: Q2 GDP Data (Wed) FOMC Interest Rate Decision (Wed) Fed Chair Powell Press Conference (Wed) PCE Inflation Index (Thu) U.S. Unemployment Rate (Fri) Consumer Sentiment (Fri) The combination of these reports may seem scary, but it’s actually welcomed by...
Weekly Stock Market Update & SPY Technical Analysis From major earnings to key economic data, markets powered through last week’s benchmarks and posted more record highs. Earnings from major financial institutions like JPMorgan, Bank of America, and Wells Fargo reflected solid economic health based on loan and spending activity. However, some early signs of slowing or tighter lending emerged from certain banks. While it’s not yet time to raise red flags, investors should watch for further indications that consumer borrowing power is being squeezed by high interest rates. Also in last week’s earnings, both Netflix and TSMC surpassed expectations. These two are the first large-cap tech names to report and have set a high bar for others. This week, attention...
