S&P 500 (SPY) Report – 02/22/24

Good morning, traders!

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

U.S. stock futures experienced a significant boost on Thursday, propelled by Nvidia’s exceptional earnings report, which sparked a worldwide tech rally and overshadowed concerns regarding the Federal Reserve’s cautious stance on interest rate cuts. The Nasdaq 100 and S&P 500 futures saw notable increases, driven by Nvidia’s impressive quarterly results that exceeded expectations, highlighting the strength of the AI sector and its impact on U.S. stock indexes.

Nvidia’s CEO announced that generative AI had reached a critical milestone, evidenced by a 265% surge in revenue and optimistic future projections. This announcement not only led to a 14% increase in Nvidia’s shares in premarket trading but also contributed to a positive trend in global markets, including significant gains in Japan’s Nikkei 225 and the pan-European Stoxx 600.

The enthusiasm for AI and its contributions to the tech industry’s success seemed to temporarily shift focus away from the Federal Reserve’s latest minutes. These minutes indicated a preference among officials for a cautious approach towards rate cuts, emphasizing the potential risks of moving too swiftly. This backdrop sets the stage for a day filled with anticipation for new reports on jobless claims and existing home sales, which could influence discussions on the timing of future rate cuts.

Nvidia’s stellar performance and its optimistic outlook for the AI sector not only underscore the company’s substantial growth but also enhance confidence in the broader tech market. This sentiment is echoed by market strategists who see substantial growth potential for Nvidia, driven by ongoing investments in AI. As the tech sector prepares for a potential rebound, investors remain attentive to additional corporate earnings reports and key economic data that could further influence market dynamics.

Thursday Economic Events:
Jobless Claims 8:30am ET – High Volatility Expected
Chicago Fed Activity Index 8:30am ET
PMI Composite Flash 9:45am ET – High Volatility Expected
Existing Home Sales 10:00am ET – High Volatility Expected
EIA Natural Gas 10:30am ET
EIA Petroleum Report 11:00am ET  – High Volatility Expected
30-Yr TIPS Auction 1:00pm ET

Fed Speaker Scheduled:
Phillip Jefferson 10:00am ET
Patrick Harker 3:15pm ET
Lisa Cook 5:00pm ET
Christopher Waller 7:35pm ET

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