S&P 500 (SPY) Report – 01/08/24

Good morning, traders!

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

U.S. stock futures experienced a decline for the beginning of 2024, facing challenges from various sectors. The Dow Jones Industrial Average and the S&P 500 both recorded losses, with tech-heavy Nasdaq Composite experiencing its worst performance since September. This decline was influenced by underperformance in mega-cap tech stocks like Apple, along with a rise in Treasury yields. Apple’s shares, in particular, fell around 6%, and the yield on the 10-year Treasury note moved above 4%.

The market’s hesitancy was also driven by concerns over the Federal Reserve’s interest rate policies and the state of the economy. A strong December jobs report and uncertainties about the path of rate cuts contributed to these worries. However, some analysts remained optimistic about the market’s overall trend and momentum. Upcoming economic indicators, including the December consumer price index and the producer price index, are anticipated to provide insights into the Federal Reserve’s inflation control efforts.

The forthcoming corporate earnings season is set to begin with reports from major banks like Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. Additionally, companies like UnitedHealth, BlackRock, and Delta Air Lines are also expected to release their results. Meanwhile, in Washington, lawmakers have announced a deal to avoid a government shutdown, setting a budget of $1.59 trillion. This news, alongside other economic developments, will be closely monitored by traders and investors as they navigate the early stages of 2024 in the stock market.

Monday Economic Events:
Investor Movement Index 12:30pm ET
Consumer Credit 3:00pm ET

Fed Speaker Scheduled:
Raphael Bostic 12:00pm ET

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