Weekly Stock Market Update & SPY Technical Analysis
Investors are eager to close out a highly volatile March on Monday and move into a new month, hoping for a turnaround. April marks the start of the second quarter, which means many companies will begin reporting earnings, starting with financial institutions in the second week of the month. For now, let’s focus on what’s coming up in the first week, beginning with this week’s economic data.
This week brings key reports on construction spending, ISM Manufacturing, and labor market data. The construction spending report is significant because it serves as a key economic indicator, reflecting the health of the construction industry and the broader economy. Policymakers use this data to shape monetary policy and adjust interest rates as needed. In January, U.S. construction spending fell -0.2%, adding to recession concerns. Investors will closely watch February’s results this week.
Also on the radar is the ISM Manufacturing Index, which assesses the health of the U.S. manufacturing sector based on surveys of purchasing managers. This report is particularly important following last week’s consumer sentiment data, which declined to its lowest level since 2022. This week, we’ll gain insight into how manufacturers perceive the economy.
The U.S. labor market data will be the primary focus at the start of the month, with multiple key reports scheduled:
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Job Openings – Tuesday at 10 AM ET
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ADP Employment Report – Wednesday at 8:15 AM ET
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Initial Jobless Claims – Thursday at 8:30 AM ET
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U.S. Unemployment Rate / Hourly Wages – Friday at 8:30 AM ET
These reports are expected to introduce market uncertainty and potentially increase volatility, so traders should factor them into their strategies. Another notable report is the U.S. Trade Deficit, which is likely to show a growing gap between imports and exports as U.S. manufacturers continue to import more goods ahead of potential tariff increases.
SPY Technical Analysis
SPY’s attempt to regain its bullish trend failed by the end of last week, pushing the index back toward recent lows. The 549.00–552.00 range remains a critical support zone—a break below this level could trigger a further decline toward 536.00–538.00.