SPY Chart done on hourly timeframe. A very eventful week is coming up for the markets as investors prepare for the latest inflation readings, Apple’s annual Keynote presentation, and retail sales data. Last week, The Fed’s Beige Book was released and it highlighted The Fed’s willingness to raise rates further if needed, but many members were optimistic that inflation is indeed on the right track of cooling down. The last CPI report showed a slight MoM uptick in inflation from 3.0% to 3.2%, the first uptick since June 2022, but still significantly down from the YoY number of 8.3%. All in all, inflation is moving on the right track, but The Fed are very cautious about taking their foot off...
SPY Chart done on hourly timeframe. Markets wrapped up a volatile August last week and started September with very little trading volume on Friday. Trading tensions were high through the week as mixed economic data poured in and left many questioning the new developments about inflation and the job market. The PCE report showed a YoY increase of 3.3% in inflation, higher than the previous month’s reading at 3%. The Fed’s target inflation reading is 2%, so an increase can result in further and lingering rate hikes. This week, The Fed’s Beige Book will be released and it is expected to detail the current health of the economy according to local and regional leaders. This book is released two weeks...
SPY Chart done on hourly timeframe. Major indexes continued to trade near their August lows last week despite stellar earnings from Nvidia. The company’s strong numbers weren’t enough to save the market from The Fed’s hawkish remarks at the Economic Symposium. Fed President Jerome Powell advocated for restrictive policy and maintained his viewpoint that inflation is still too high, so no sign of a definitive end for interest rate hikes yet. This week, which will wrap up August, we’ll get multiple reports about the current state of the U.S. labor market and inflation. The PCE index, which has steadily shown inflation is cooling down month over month, is expected on Thursday. This index is The Fed’s preferred inflation gauge so...
SPY Chart done on hourly timeframe. It’s that time of year again where the world’s top economists and bankers come together for their annual Jackson Hole Economic Symposium and address current economic challenges and trends. This year’s focus will of course be around interest rates, inflation, and the post-pandemic impacts on U.S. and World Economies. To battle inflation, banks across the world raised interest rates, the U.S. in specific hiked rates to a 20 year high yet it still battles the lingering effects of higher prices. Those effects are reflected perfectly in the consumer spending habits reflected in recent retailer earnings. Last week, big box retailers like Target, Walmart, Home Depot, and TJ Maxx reported their quarterly earnings and one...
SPY Chart done on hourly timeframe. Markets continued their pull back last week after mixed inflation data from the CPI and PPI reports. Prices of goods and services saw an uptick in July as CPI data showed a 3.2% year over year reading compared to June’s 3.0%. The jump may be small, but it moves inflation further away from The Fed’s target of 2%; which means more rate hikes could be due. The Federal Reserve will release their Minutes report this week, which will breakdown their last FOMC meeting and give investors a further insight on Fed members’ outlook on monetary policy. Although The Minutes report doesn’t really expose new information, it still makes markets nervous so be on the...
