Weekly Stock Market Update & SPY Technical Analysis Markets booked their longest winning streak in over 20 years as major indexes recovered from their April lows, but the rally will face a big test this week as investors brace for the Federal Reserve’s FOMC meeting. Before diving into the details, let’s briefly discuss what took place last week. Last week introduced a plethora of new economic updates and earnings data. On the economic front, the first quarterly GDP reading of this year reflected that the U.S. economy contracted by -0.3% due to an uptick in imports. Companies rushed to import products from other countries ahead of Trump’s tariffs, which subtracted from the United States’ growth (exports add to GDP and...
Weekly Stock Market Update & SPY Technical Analysis April has been a wild ride for stocks, with record-setting moves both up and down in a headline-driven market. As the month wraps up, investors are asking: will we finish April in the green? This week brings critical tests as key economic data and major earnings reports hit. Here’s the breakdown: Monday – No major events scheduled Tuesday – Advanced retail/wholesale inventories, Consumer Confidence, Job Openings Wednesday – ADP Employment, Q1 GDP, Consumer Spending, PCE Inflation Index Thursday – Initial Jobless Claims, Construction Spending Friday – U.S. Unemployment Rate Recession fears are already high, and the Q1 GDP report could add fuel to the fire. A recession is typically defined as two...
Weekly Stock Market Update & SPY Technical Analysis Market volatility cooled last week, with the VIX (Volatility Index) now trading nearly 50% below its highs from earlier in April. Although tariffs continue to fuel uncertainty, it appears that the initial shock may have subsided for Wall Street. Investors are now shifting their focus toward quarterly earnings and upcoming updates from the Trump administration regarding trade discussions, which the administration claims are going “very well.” In reality, no matter how rattled markets may get in the short term, the primary long-term drivers of the stock market remain interest rates and corporate earnings. Federal Reserve Chairman Jerome Powell’s speech last week reiterated the Fed's commitment to fighting inflation, noting that ongoing tariffs...
Weekly Stock Market Update & SPY Technical Analysis Investors are eager to return to the markets this week after the White House signaled that phones, computers, and chips will be excluded from Trump’s tariffs—a move that could push markets back toward their all-time highs. The technology sector accounts for more than 30% of the S&P 500, and that 30% played a major role in the 2024 rally, contributing to over 50% of the total gains. What’s important to note about this market correction is that it wasn’t caused by economic weakness or a black swan event—it was politically driven. Great stocks found themselves caught in political rhetoric, which also came as a shock to the economic outlook but hasn’t had...
Weekly Stock Market Update & SPY Technical Analysis Markets booked their fastest correction on record last week, leaving two major indexes in bear market territory heading into the weekend. The Nasdaq Composite Index and the Russell 2000 are now both more than 20% below their all-time highs, with the S&P 500 and Dow Jones catching up quickly. The sell-off that began earlier this year intensified after Trump’s “Liberation Day” announcement of unprecedented tariffs encompassing all major global trading partners. Markets around the world trembled in response, and analysts quickly adjusted their economic outlook. Most notably, JPMorgan raised the odds of a recession to 100% this year. Previous tariff announcements from Trump were often followed by quick reversals, but this time,...
