S&P 500 (SPY) Report – 03/27/23

Good morning traders!

The S&P 500 ($SPY) is trading above Friday’s close. Let’s get into it…

It’s Monday, and stock futures are trading higher as investors try to move on from the regional bank crisis that began earlier this month following the collapse of Silicon Valley Bank. Also the recent rout of Deutsche Bank shares highlights that traders are still looking for weak links, and financial conditions are tightening. This will affect the economy and aid the Federal Reserve in controlling inflation. The upcoming PCE reading is for February and may already be outdated, but the real question is how much the banking crisis will impact economic activity in the coming months. Minneapolis Fed President Neel Kashkari thinks that the banking turmoil could bring us closer to recession. Despite Fed Chairman Jerome Powell’s recent rate hike, yields on the two-year Treasury and ten-year yields have dropped, which traditionally signals recession. This signal has been flashing red for half a year, so it’s possible we are closer to a recession now than we were a month ago. Despite the recent turmoil, the S&P 500 is on track to finish March flat and the first quarter with a 3% increase.

Trade Ideas:
We advise everyone to trade with caution today as potential volatility may persist into today from the previous sessions following the Federal Reserve’s decision and recent speaker remarks

Note: Moving averages are reported from the previous trading session and will change during the next trading session.

Monday Economic Events:
Dallas Fed Mfg Survey 10:30am ET

Fed Speaker Scheduled:
Phillip Jefferson 5:00pm ET


DailyBubble’s Disclaimer
This article provided by the DailyBubble team should only be considered as informational and/or entertainment by the reader. DailyBubble makes no representation to buy or sell any security or financial instrument within the article. Readers seeking investment advice should seek independent financial advice from a professional, and independently research and verify. The DailyBubble team wrote this article and may express its own opinions therein.

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