Weekly Market Update & SPY Technical Analysis Markets ended lower last week as tensions in the Middle East escalated, sending major indexes down and oil prices higher. Long sworn enemies Israel and Iran are bombarding one another with military strikes, and many predict that the U.S. is either already involved or will get involved, raising questions on whether or not the government can support another war. Trump’s promise to bring peace between Russia and Ukraine hasn’t exactly gone to plan, and now the Israel-Iran tensions will put even more pressure on the administration. How does war impact stocks? Markets have a history of shrugging off war news in a relatively short timeframe. The Ukraine-Russia war at its start caused a...
Weekly Market Update & SPY Technical Analysis The market recovery continued last week as stocks pushed higher in response to positive progress on trade talks with Europe and China. Markets also celebrated another relieving labor market report, which reflected a 4.2% reading of the U.S. unemployment rate. A strong labor market is essential to avoid further slipping into a slowdown in economic growth, especially during a time where recession fears are still brewing. One thing traders should note however, is that although the unemployment rate remained healthy at 4.2%, the U.S. economy only added 37,000 private payroll jobs in May, far below the 110,000 forecast. A continued trend of slow hiring could eventually boost unemployment, which will in-turn impact economic...
Weekly Stock Market Update & SPY Technical Analysis May turned out to be a strong month for the markets, as stocks rebounded from the sharp sell-off following Trump’s "Liberation Day" announcement. However, tariffs continue to weigh heavily on investor confidence as we enter a new month. Just moments after the market closed on Friday, Trump announced plans to double the existing 25% tariff on steel imports to 50%, reigniting fears of rising costs—especially in sectors like automotive and heavy machinery. Despite last week’s inflation data showing a drop to the lowest levels in years, many Americans remain concerned that tariffs will eventually drive prices higher. Experts have echoed these concerns in their recent forecasts. The economy has already felt the...
Weekly Stock Market Update & SPY Technical Analysis It’s a shortened holiday week in the market, but it’s jam-packed with exciting events and data. The biggest focus this week will be Nvidia’s earnings, scheduled for Wednesday after the market closes. Nvidia is currently the second-largest company in the stock market by market cap ($3.2T), trailing only Microsoft ($3.34T), making its earnings a must-watch event. A company of that magnitude has the ability to move the entire industry it’s in, specifically the semiconductor industry and technology sector, depending on the report’s outcome. Earnings data often gives rise to dozens of new setups, especially when it comes from a large and influential company, and Nvidia is considered one of the most influential...
Breaking news hit the wire just moments after market close last Friday of the credit rating agency Moody’s downgrading the U.S. credit rating from AAA to AA1. Moody’s was the final credit rating agency to uphold the AAA rating, but a concern over the U.S. deficit forced their hand. The market reaction that followed was obviously negative, with the S&P 500 giving up its entire gain from Friday in the post-market hours, leaving many to wonder whether the downslide will continue into this week. The last downgrade came on August 1, 2023, which sent markets lower and kicked off a three month market correction, but that doesn’t necessarily mean the same will happen this time. There are always a combination of...
