S&P 500 (SPY) Report – 02/21/24
Good morning, traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
US stock futures trade slightly lower this morning, influenced by anticipations surrounding Nvidia’s earnings report and the Federal Reserve’s meeting minutes, which are crucial for future interest rate decisions. U.S. stock futures, including those for the S&P 500, Dow Jones Industrial Average, and Nasdaq 100, all saw declines. Nvidia’s stock, in particular, faced pressure as investors prepared for its quarterly results, with a significant 4% drop on Tuesday. This is seen as a critical moment for both the company and the broader stock market, given Nvidia’s influence on AI technology and its position as a major contributor to recent stock market gains.
In the tech sector, Palo Alto Networks saw a dramatic premarket drop of over 20% after revising its annual revenue forecast downwards, signaling potential concerns over tech spending. Additionally, Walgreens shares fell 3% as it was announced that Amazon would take its place in the Dow Jones Industrial Average, reflecting significant shifts within major stock indexes.
The Federal Reserve’s upcoming minutes from its January meeting are highly anticipated, offering insights into potential interest rate changes. This is especially relevant in light of recent economic data that has led to speculation about the central bank’s future actions, with many investors hoping for a rate cut by June. Moreover, HSBC’s profit took a hit from a substantial charge related to its stake in a Chinese bank, highlighting concerns about global economic impacts.
Finally, the broader stock market is facing challenges, with Nvidia’s expected earnings and the Fed’s meeting minutes being closely watched. Other companies, including HSBC, Wingstop, and Analog Devices, are also set to report their quarterly results. This period is pivotal for investors trying to gauge the market’s direction amid concerns over tech valuations and the potential for changes in monetary policy.
Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
Redbook Sales 8:55am ET
Atlanta Business Inflation 10:00am ET
FOMC Minutes 2:00pm ET
API Crude Oil Data 4:30pm ET
Fed Speaker Scheduled:
Raphael Bostic 12:30pm ET
Michelle Bowman 1:00pm ET
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