S&P 500 (SPY) Report – 01/29/24

Good morning, traders!

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

U.S. stock futures showed minimal change on Monday, indicating a cautious start to a week filled with significant events for investors. These events include several key tech company earnings reports, a decision on interest rates by the Federal Reserve, and the release of the U.S. jobs report for December. The Dow Jones Industrial Average and the S&P 500 futures remained steady, while Nasdaq 100 futures saw a slight increase. This follows a period of gains in the major stock indices, driven by strong performance in the tech sector and encouraging economic data.

This week is crucial for the stock market, with major technology companies such as Microsoft, Apple, Meta, Amazon, and Alphabet scheduled to release their earnings. These tech giants, often referred to as the “Magnificent Seven,” have significantly influenced recent record-setting gains in the S&P 500. Investors will be closely watching to see if their strategies, including AI developments and workforce reductions, have been successful. Additionally, other significant companies will also be reporting their earnings, making this one of the busiest weeks of the earnings season.

The Federal Open Market Committee is set to begin its two-day policy meeting on Tuesday, with expectations that the Federal Reserve will maintain the interest rate at 5.25%. The recent data indicating cooling inflation and a robust economy has led to speculation about future rate cuts. Investors will pay close attention to Fed Chair Jerome Powell’s comments for any hints about the timing of potential rate reductions. The market’s expectations for March bets have been scaled back due to these developments.

In the backdrop of these events, there are growing concerns about China’s economic health, particularly in light of the looming failure of the real estate giant Evergrande. A Hong Kong court’s decision to liquidate Evergrande is seen as a significant development in China’s property crisis. Moreover, oil prices are fluctuating, influenced by concerns over Chinese demand and increasing tensions in the Middle East. U.S. benchmark WTI futures traded below $78 a barrel, while Brent futures were around $83 a barrel, reflecting these global uncertainties.

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

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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