Weekly Market Update & SPY Technical Analysis Markets reached another new milestone last week as both the S&P 500 and Nasdaq Indexes touched all time highs. The move was fueled by Nvidia’s stock rally, which led the semiconductor giant’s valuation above $3 trillion, overtaking Apple’s market cap to become the world’s second most valuable company. Whether you believe Nvidia is overvalued or not, the excitement around the stock and artificial intelligence seems to be eclipsing any other fear in the market. Stocks have continued to make new highs this year despite lingering inflation, geopolitical uncertainty, and high interest rates. The market’s new highs will be tested again this week with new inflation data looming along with the FOMC meeting. The...
Weekly Stock Market Update & SPY Technical Analysis Markets are kicking off a new month this Monday and traders are excited to see how well it measures to May’s performance. Buyers proved their resilience last month as they endured a plethora of headwinds from political tensions across the globe to economic hardships right here in the U.S. The month was the best month of the year so far, and based on Friday’s close, buyers might be hungry for more. Before getting into the events of this week, let’s discuss some key reports that were released last week. First and foremost, the U.S. GDP report was released and reflected a softer reading than anticipated at 1.3%. This is a significant decline...
Weekly Stock Market Update & SPY Technical Analysis Traders are complexed by last week’s price action after one of the most prominent companies on the market rocketed higher, but indexes and nearly all other stocks sold off. The company we’re referring to is of course Nvidia, which reported another blowout quarterly earnings and moved more than 10% higher to a new all time high. Nvidia’s earnings were a point of concern leading up to the report because traders were afraid of it bursting the artificial intelligence “bubble”, but its numbers reassured markets that demand in the space is still booming. The divergent move between Nvidia and the rest of the market could be a result of capital rotation from other...
Weekly Market Update & SPY Technical Analysis Markets posted a record close last week after both the S&P500 and The Dow pushed to another new all time high for the year, once again proving buying resilience despite lingering inflation and economic uncertainty. Last week’s inflation data reflected mixed results between the consumer and producer side per the CPI and PPI reports, with consumer side inflation declining from 3.5% to 3.4%, but producer side rising for the fourth month in a row. The rise in prices on the producers’ side shouldn’t be eclipsed by the moderate improvement on consumer prices because often times rising costs on the wholesale/manufacturing level lead to a rise in prices for consumers, which will ultimately move...
Weekly Market Update & SPY Technical Analysis Inflation is once again back in focus this week as markets prepare for the Consumer and Producer Price Index releases. Last month’s inflation data sent markets in a spiral after a spike in consumer prices reflected the highest CPI reading since September of last year. Energy, groceries, and rents all climbed in price, which brought the overall year over year CPI to 3.5%. The Federal Reserve’s target rate is 2%, and they’ve been adamant about reaching that level, even if they have to keep interest rates elevated. Current interest are at the highest level in more than 20 years, which is putting serious strain on companies from small to large, but especially those...
