SPY Chart done on hourly timeframe. Markets are coming back from a very eventful week that shed light on the labor market in the United States and reminded everyone where The Fed stood on interest rates. In his testimony to Congress, Federal Reserve Chairman Jerome Powell reinforced The Fed’s stance on inflation, stating once again that they’re looking for more economic data to ensure inflation stays down before lowering interest rates. Last week’s labor market data showed just how strong the U.S. employment rate is, another reason why The Fed is no rush to cut interest rates. The debate on monetary policy will soon have an answer come the FOMC later this month, but first this week’s big focus is...
SPY Chart done on hourly timeframe. Buyers crushed sellers last week as indexes once again moved to all time highs to start off the new month. Markets shrugged off an uptick in inflation per the PCE report and despite the chances of a rate cut in March being diminished, optimism is flowing in the market. Last week we also saw the latest GDP revision of Q4 2023, which came in at 3.2%, missing the 3.3% estimates, but markets remained unfazed by the small miss. This week’s attention shifts to the labor markets. U.S. payroll data is set to be released on Friday and estimates are much lower than the previous reading. The last payroll data came in at 353,000, but...
SPY All time highs have become a routine occurrence in 2024 thanks to optimism around artificial intelligence and the growth it offers. Semiconductor companies have especially been in the spotlight as their earnings exponentially exceed expectations as chip demand grows. Last week’s earnings report from Nvidia fueled buying confidence and propelled markets higher, but there will be another major test this week from the economic front. The PCE report, which is The Fed’s preferred inflation gauge, will be released on Thursday and investors are eager to see the results it brings. January’s CPI report reflected higher inflation than expected, so there’s a good chance we’ll see the same result on the PCE report. The market rally we’ve seen since October...
SPY Chart done on hourly timeframe. Stocks wavered last week after data from the latest CPI and PPI reports showed inflation increased on both the consumer and producer index in January. The newly released inflation numbers are likely to guarantee that there will be no interest rate cut in the coming FOMC meeting, but this week’s Minutes Report will add more clarity to where Federal Reserve Members stand on interest rates. Also on watch this week will be earnings from Nvidia, Home Depot, and Walmart. Nvidia’s earnings are especially important because it has become the face of artificial intelligence, so its report will impact the entire industry. Technical analysis: Despite the sharp decline markets saw last week, most indexes managed...
SPY Chart done on hourly timeframe. The S&P500 closed above 5000 for the first time ever on Friday as buyers continued pouring into the market. Stellar earnings from large cap technology companies and forecasts of a rate cut have been the fuel for this rally, but this week will be a big test of how soon an interest rate cut could come. Last week we heard several Fed members speak and the theme was that they will continue to rely on economic data to implement a rate cut. We’ll be seeing some of that key economic data this week with the CPI and PPI reports, which have been critical in measuring inflation. December’s inflation reading reflected a uptick from 3.1%...
