Weekly Stock Market Update & SPY Technical Analysis “Timberrrr!” went memory and semiconductor stocks last week as investors took profits and began questioning just how much upside remains in the AI trade. After months of relentless gains, many of the market’s biggest winners suddenly became its biggest losers, reminding investors that even the strongest themes eventually need a breather. Is the AI rally over? The market should start getting its answer over the coming weeks as the world’s largest technology companies involved in the AI buildout report quarterly earnings. Right now, there are only two things that can restore investor confidence…strong corporate earnings and lower interest rates. The interest rate picture remains uncertain. Rising energy prices have complicated the inflation...
Weekly Stock Market Update & SPY Technical Analysis The stock market has been “boring” over the past few weeks, but things are about to get exciting again as investors receive important economic data and earnings season kicks off. Since Kevin Warsh took over as the new Federal Reserve Chair, investors have been increasingly uncertain about the future of monetary policy. Warsh was initially viewed as someone who could favor lower interest rates, making his appointment appear bullish for stocks. However, his first remarks and Fed meeting were far more hawkish than many investors expected. The main problem? Inflation. Ongoing inflation pressures (primarily because of the Middle East chaos) have made it extremely difficult for the Federal Reserve to justify additional...
Weekly Stock Market Update & SPY Technical Analysis New Fed Chairman Kevin Warsh spoke last week ahead at the annual European Central Bank (ECB) Forum in Sintra, Portugal. One key remark that stood out to the Hyper Stocks team was his promise to “disappoint” anyone who thinks he will target inflation running higher than 2%. The reason this is worth noting is because it ties directly to The Fed’s interest rate decisions. Trump & Warsh Shortly after being nominated by Trump to replace Jerome Powell, worries surfaced that Warsh would cut rates to appease Trump rather than stick to the Fed’s dual to serve the American public. We’ve covered the implications behind all this many times in our analysis. Markets...
Weekly Stock Market Update & SPY Technical Analysis If you look at the “usual” names, you’d think that the bull market has lost its touch. Yesterday’s hottest stocks are no longer charging higher, leaving many to wonder if the market rally is coming to an end. This couldn’t be further from the truth…in fact, this market rally is improving, in a way that investors have been awaiting for a very long time. Over the past decade, particularly the last six years, several technology companies grew larger than life…reaching trillions in market cap and leading indices like the S&P 500 and Nasdaq 100 higher. While this was a rally worth enjoying, it simply was not sustainable. Market Breadth “Market breadth,” which...
Weekly Stock Market Update & SPY Technical Analysis Politics, economic data, and a new Fed chairman…each one of these points must be considered by traders and investors as we enter the last two weeks of June and deeper into the third quarter. The Current Geopolitical Situation You’re not alone in being completely unconvinced of any peace treaty between the U.S. and Iran, especially after recent reports of Israel increasing its attacks on Lebanon, threatening any sort of deal. Even President Trump is seemingly growing impatient with Israel’s Prime Minister Netanyahu’s fierce opposition. Why does this matter to us? Apart from us being human beings and having empathy towards the wars around the world…this matters to us as traders and investors...
