S&P 500 (SPY) Report – 03/05/24
Good morning, traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
U.S. stock futures declined, indicating a continuation of Wall Street’s recent losses. Tech giants like AMD and Apple faced setbacks, with AMD experiencing regulatory issues in China and Apple seeing a significant drop in iPhone sales in the country. Meanwhile, GitLab’s shares plummeted due to a weak annual forecast, while Target enjoyed a surge following better-than-expected holiday-quarter earnings. This market movement follows a trend of declines, particularly impacting the tech-heavy Nasdaq Composite.
Notably, despite the market’s general retreat, large-cap tech companies remain attractive for AI investment, according to Jason Draho of UBS Global Wealth Management. Although valuations are high, their significant growth rates and scale position them favorably. Despite current market volatility and comparisons to historical exuberance, there’s still potential for upside, suggesting a complex but optimistic outlook for tech stocks.
The market’s direction appears influenced by concerns over interest rate cuts and the robustness of tech stocks. S&P 500, Dow Jones, and Nasdaq futures all fell, with Apple and Tesla dragging the market down due to various challenges, including regulatory fines and operational disruptions. This cautious sentiment reflects broader uncertainties in the market, including the future actions of the Federal Reserve and tech sector dynamics.
Attention is now turning to upcoming economic data releases and Federal Reserve Chair Jerome Powell’s testimony to Congress. Investors are looking for signals regarding inflation and interest rate strategies. Meanwhile, Bitcoin’s price fluctuations and Target’s earnings reflect the varied responses in different sectors, highlighting the market’s current cautious but watchful stance.
Tuesday Economic Events:
Redbook Sales 8:55am ET
S&P Global Services PMI 9:45am ET – High Volatility Expected
ISM Purchasing Manager Index 10:00am ET – High Volatility Expected
Factory Orders 10:00am ET
API Crude Oil Data 4:30pm ET
Fed Speaker Scheduled:
Michael Barr 12:00pm ET
Michael Barr 3:30pm ET
Neel Kashkari 4:15pm ET
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