Weekly Stock Market Update & SPY Technical Analysis The S&P 500 reached a new milestone last week, touching 5500 for the first time in history, but buying power fizzled out by Friday after Nvidia and Apple suffered strong pull backs to end the week. The two stocks have been carrying the market higher in recent months, helping indexes across the board push to new highs, so the drawdown could cause further uncertainty heading into this week, especially ahead of a week filled with key economic data. Monday will kick off the week with multiple Fed members speaking, including Chicago Fed President Austan Goolsbee, who has made several comments regarding interest rates that have driven markets down. Tuesday will bring more...
Weekly Stock Market Update & SPY Technical Analysis Setting new all time highs has become the norm for the market in recent weeks as stocks continue to charge higher on optimism around cooling inflation and the possibility of a rate cut. Last week’s Consumer Price Index (CPI) reflected another month over month decline in inflation, showing a 3.3% reading vs the anticipated 3.4%. The better than expected number supercharged the S&P to another new all time high, but buying power fizzled out after The Fed’s FOMC meeting and Jerome Powell’s testimony. Fed President Powell was optimistic around the progress on inflation, but despite the improving number, he stated that there will likely only be one interest rate cut this year,...
Weekly Market Update & SPY Technical Analysis Markets reached another new milestone last week as both the S&P 500 and Nasdaq Indexes touched all time highs. The move was fueled by Nvidia’s stock rally, which led the semiconductor giant’s valuation above $3 trillion, overtaking Apple’s market cap to become the world’s second most valuable company. Whether you believe Nvidia is overvalued or not, the excitement around the stock and artificial intelligence seems to be eclipsing any other fear in the market. Stocks have continued to make new highs this year despite lingering inflation, geopolitical uncertainty, and high interest rates. The market’s new highs will be tested again this week with new inflation data looming along with the FOMC meeting. The...
Weekly Stock Market Update & SPY Technical Analysis Markets are kicking off a new month this Monday and traders are excited to see how well it measures to May’s performance. Buyers proved their resilience last month as they endured a plethora of headwinds from political tensions across the globe to economic hardships right here in the U.S. The month was the best month of the year so far, and based on Friday’s close, buyers might be hungry for more. Before getting into the events of this week, let’s discuss some key reports that were released last week. First and foremost, the U.S. GDP report was released and reflected a softer reading than anticipated at 1.3%. This is a significant decline...
Weekly Stock Market Update & SPY Technical Analysis Traders are complexed by last week’s price action after one of the most prominent companies on the market rocketed higher, but indexes and nearly all other stocks sold off. The company we’re referring to is of course Nvidia, which reported another blowout quarterly earnings and moved more than 10% higher to a new all time high. Nvidia’s earnings were a point of concern leading up to the report because traders were afraid of it bursting the artificial intelligence “bubble”, but its numbers reassured markets that demand in the space is still booming. The divergent move between Nvidia and the rest of the market could be a result of capital rotation from other...
