Weekly Stock Market Update & SPY Technical Analysis Major indexes ended flat last week as markets reacted to Nvidia’s earnings and the latest inflation data. It seems like the market has been riding a record high, but hasn’t been able to see a breakout rally or a strong sell-off for weeks, but that’ll likely change this week as investors take action into the new month. The S&P 500’s climb to record highs has been driven largely by Nvidia and other stocks at the center of the AI boom. Nvidia alone now represents about 8% of the index, making its earnings a key catalyst for market sentiment. While the company once again beat expectations, much of the good news appeared to...
Weekly Stock Market Update & SPY Technical Analysis Fed Chair Jerome Powell had a mic drop moment last week after his speech sparked an unbelievable rally across the market last week. Powell suggested that The Federal Reserve is ready to shift their policy, reinforcing odds of an interest rate cut in September. The last interest rate cut was in December 2024, making this a long awaiting moment by both consumers and investors. Why does this matter? An interest rate cut reduces the cost of borrowing capital, making loans and credit more affordable for both individuals and businesses. This encourages households to spend more, and businesses are incentivized to invest in expansion, hire additional workers, and take on new projects. As...
Weekly Stock Market Update & SPY Technical Analysis Markets shrugged off fears of rising inflation last week and continued to set records, pointing to the undeniable strength buyers have in the current environment. Although inflation didn’t increase on the consumer end, it did on the producers’ side. The Producer Price Index (PPI) rose to its highest level in three years, sparking fears that tariffs are beginning to work their way into costs. The initial reaction to the report was negative, but markets recovered as hopes for a ceasefire between Ukraine and Russia eclipsed the economic data. Perhaps because a ceasefire would bring global prices of food and energy down, making it an optimistic solution to inflation. Also on the economic...
Weekly Stock Market Update & SPY Technical Analysis Inflation is back in focus this week as markets brace for the latest Consumer Price Index (CPI) and Producer Price Index (PPI) reports. Recent data from the PCE report showed inflation climbing to 2.6%, its highest level in months, driven in part by tariffs, with projections pointing to further price increases as those effects persist. These two upcoming reports will provide a clearer view of price pressures from both the consumer and producer sides. Higher inflation pulls the economy further from the Federal Reserve’s 2% target, lowering the likelihood of a rate cut. While weak labor market data recently pushed the odds of a September cut above 90%, a renewed surge in...
Weekly Stock Market Update & SPY Technical Analysis The Volatility Index (VIX) spiked last week after the Federal Reserve decided to keep interest rates unchanged, pushing back against pressure from President Trump to cut them. Fed Chair Jerome Powell followed the announcement with a speech that struck a cautious tone, citing ongoing concerns about inflation and the economic impact of tariffs. His remarks added to investor uncertainty and triggered profit-taking across the broader market. Adding to the pressure was the latest Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation gauge, which ticked up for the second consecutive month. Rising inflation typically undermines the case for rate cuts, yet the probability of a cut at the September meeting remains high,...
