Good morning, traders!
The S&P 500 ($SPY) is trading above yesterday’s close. Let’s get into it…
U.S. stock futures are trading notably higher this morning, signaling a potential new record high for the S&P 500. This upward trend is primarily driven by a strong showing in the technology sector. This shift towards positive momentum comes after a phase of uncertainty and variable investor sentiment.
The technology sector, particularly companies like Apple and major chipmakers, has been a key driver of this market rally. After experiencing a downturn earlier, the tech sector has recently rebounded, with significant gains noted on Thursday. This recovery has helped the S&P 500 come close to its all-time high, and has also contributed to ending a three-day losing streak for the Dow Jones Industrial Average. Investors are closely monitoring these developments, hoping for continued growth.
Despite the current optimism, the market has faced challenges in the recent past. In 2022, the S&P 500 saw a 19% decline, but it recovered impressively in 2023 with a 24% gain. This recovery was driven by several factors, including a resilient economy and a decrease in inflation, which allowed the Federal Reserve to pause its interest rate hikes. However, the beginning of 2024 saw some profit-taking, causing a temporary pause in the market rally.
Investors are also keeping an eye on political developments in Washington. Congress recently passed a bill to prevent a partial government shutdown, a move seen as crucial for maintaining market stability. This bill, which funds the federal government through early March, has been passed to President Joe Biden for signing. The political climate remains a potential concern for investors, but the recent legislative action has provided some reassurance.
Friday Economic Events:
Michigan Consumer Sentiment 10:00am ET
Michigan Inflation Expectation 10:00am ET
Existing Home Sales 10:00am ET – High Volatility Expected
Baker Hughes Rig Count 1:00pm ET
Fed Speaker Scheduled:
Michael Barr 1:00pm ET
Mary Daly 4:15pm ET
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.