Weekly Market Update & SPY Technical Analysis The market recovery continued last week as stocks pushed higher in response to positive progress on trade talks with Europe and China. Markets also celebrated another relieving labor market report, which reflected a 4.2% reading of the U.S. unemployment rate. A strong labor market is essential to avoid further slipping into a slowdown in economic growth, especially during a time where recession fears are still brewing. One thing traders should note however, is that although the unemployment rate remained healthy at 4.2%, the U.S. economy only added 37,000 private payroll jobs in May, far below the 110,000 forecast. A continued trend of slow hiring could eventually boost unemployment, which will in-turn impact economic...
Weekly Stock Market Update & SPY Technical Analysis May turned out to be a strong month for the markets, as stocks rebounded from the sharp sell-off following Trump’s "Liberation Day" announcement. However, tariffs continue to weigh heavily on investor confidence as we enter a new month. Just moments after the market closed on Friday, Trump announced plans to double the existing 25% tariff on steel imports to 50%, reigniting fears of rising costs—especially in sectors like automotive and heavy machinery. Despite last week’s inflation data showing a drop to the lowest levels in years, many Americans remain concerned that tariffs will eventually drive prices higher. Experts have echoed these concerns in their recent forecasts. The economy has already felt the...
Weekly Stock Market Update & SPY Technical Analysis It’s a shortened holiday week in the market, but it’s jam-packed with exciting events and data. The biggest focus this week will be Nvidia’s earnings, scheduled for Wednesday after the market closes. Nvidia is currently the second-largest company in the stock market by market cap ($3.2T), trailing only Microsoft ($3.34T), making its earnings a must-watch event. A company of that magnitude has the ability to move the entire industry it’s in, specifically the semiconductor industry and technology sector, depending on the report’s outcome. Earnings data often gives rise to dozens of new setups, especially when it comes from a large and influential company, and Nvidia is considered one of the most influential...
Breaking news hit the wire just moments after market close last Friday of the credit rating agency Moody’s downgrading the U.S. credit rating from AAA to AA1. Moody’s was the final credit rating agency to uphold the AAA rating, but a concern over the U.S. deficit forced their hand. The market reaction that followed was obviously negative, with the S&P 500 giving up its entire gain from Friday in the post-market hours, leaving many to wonder whether the downslide will continue into this week. The last downgrade came on August 1, 2023, which sent markets lower and kicked off a three month market correction, but that doesn’t necessarily mean the same will happen this time. There are always a combination of...
Weekly Stock Market Update & SPY Technical Analysis Investors are anxious to come back to markets this week as they await the latest trade-deal developments between the United States and China. Last week, markets celebrated a newly inked deal between the U.S. and the UK, with the Trump administration praising it as the first of many “great” deals to come. The biggest changes in the deal were around cars, steel, and aluminum. The U.S reduced its tariff on British car imports from 27.5% to 10% for up to 100,00 vehicles annually. The U.S. tariffs on UK steel and aluminum, previously raised to 25%, have been eliminated for certain sectors, providing relief to manufacturers. The deal also established a tariff-free quota...
