Weekly Stock Market Update & SPY Technical Analysis The market volatility index (VIX) moved to levels not seen since April last week following a sharp technology sector sell-off. The catalysts behind the downside move were earnings from Tesla and Google, which reported mixed results that left traders uncertain about the remainder of the earnings season. Tesla, one of the world’s leading electric vehicle sellers and a top name in innovation, missed on profit estimates and declined more than 25% following the report. Google also sold off following their report despite topping revenue and profit estimates, which was likely a result of their YouTube ad revenue falling short of expectations. Weakness in ad revenue was seen as weakness for other media...
Weekly Stock Market Update & SPY Technical Analysis Markets tumbled lower last week as nerves around the election heightened, and an unexpected IT meltdown caused thousands of outages among different companies and industries. On the political end, markets are starting to weigh the chance of President Biden dropping from the race, which has been supported by top Democratic leaders. This, along with the assassination attempt on Trump, is causing strong turbulence in U.S. politics, which ultimately leaves markets uncertain. Both parties have their own agendas that bring about different implications for investors, markets, and taxes. As the odds of them winning shift back and forth, investors are likely to shift their sentiment along with those odds. Last week’s IT outage...
Weekly Stock Market Update & SPY Technical Analysis Small caps saw an influx of buyers last week and pushed the Russell 2000 to a new 52 week high, a long awaited move that has been months in the making. IWM, which is the Russell 2000 ETF, saw the largest surge of volume since February; however as it ticked higher, large cap stocks and indexes moved lower. This is a market phenomenon called capital rotation, a normal event that takes place when investors move capital from one sector or fund to another. The small cap index is one of the few major indexes that is yet to reach all time highs, strongly underperforming the S&P 500 and The Dow Jones, so...
Weekly Stock Market Update & SPY Technical Analysis Markets kicked off the second half of the year with a rally into another new all time high, continuing their winning streak from the previous two quarters. 2024 has been a great year for investors thanks to optimism around artificial intelligence and a soft economic landing, but markets will face multiple tests this week, including new inflation data, more comments from Fed Chairman Jerome Powell, and July’s preliminary consumer sentiment report. The Consumer and Producer Price Indexes will update investors on the latest inflation reading, which is estimated to come in at 3.1%, improving from last month’s 3.3%. The battle against inflation has been ongoing for nearly two years, limiting The Fed’s...
Weekly Stock Market Update & SPY Technical Analysis The S&P 500 and the Nasdaq 100 Indexes both reached new milestones last month thanks to the exponential rally that Nvidia and other technology stocks held. Despite headwinds of a slowing economy, lingering inflation, and geopolitical turmoil, investors remained bullish on markets, primarily basing their buying on optimism around artificial intelligence and hopes of an interest rate cut; however most seasoned investors realize that trouble may lurk ahead as we head into election season. High nerves became apparent following the first Presidential Debate, which led markets lower in the second half of last week, despite the improving inflation data reflected on the PCE Index. Politics and financial markets are very intertwined, so...
