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...
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,...
