S&P 500 (SPY) Report – 03/06/24
Good morning, traders!
The S&P 500 ($SPY) is trading above yesterday’s close. Let’s get into it…
U.S. stock futures saw an uptick, driven primarily by a rebound in technology stocks following consecutive days of losses on Wall Street. Notably, CrowdStrike and Palantir experienced significant gains following a strong quarterly report and a major army contract win, respectively. However, while tech stocks rallied, other sectors faced challenges; Nordstrom and Foot Locker both saw substantial drops due to concerns over future sales and earnings guidance.
Federal Reserve Chair Jerome Powell, in his prepared remarks for Congressional hearings, hinted at the possibility of lowering interest rates within the year, although he emphasized that immediate rate cuts were not on the table. He suggested that if economic conditions aligned with expectations, it might become appropriate to reduce policy restrictions. Powell’s comments come against the backdrop of recent market volatility, particularly within the tech sector, influenced by large-cap tech stock sell-offs and disappointing sales figures from companies like Apple.
The market experienced a blend of reactions, with declines in the major indexes such as the Dow, S&P 500, and Nasdaq Composite, all dropping by at least 1% in the latest session. This downturn was mainly attributed to the faltering tech sector, driven by disappointing sales reports and investor shifts. Despite this, market observers like Jay Hatfield from Infrastructure Capital Advisors note the market’s resilience and suggest that the current trends indicate a rotation rather than a broad market downturn.
On the economic front, the U.S. private sector reported job growth in February, albeit at a pace below economists’ expectations, as per ADP’s latest data. The addition of 140,000 jobs, although an improvement from January’s revised figures, still fell short of the anticipated 150,000, indicating a slowing yet ongoing recovery in the job market. This comes at a time when the Federal Reserve is carefully considering its approach to interest rates, with future decisions heavily reliant on evolving economic indicators and inflation trends.
Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
ADP Employment Report 8:15am ET – High Volatility Expected
JOLTS 10:00am ET – High Volatility Expected
Wholesale Inventories 10:00am ET
EIA Petroleum Report 10:30am ET
Beige Book 2:00pm ET
Fed Speaker Scheduled:
Jerome Powell 10:00am ET – High Volatility Expected
Mary Daly 12:00pm ET
Neel Kashkari 4:15pm ET
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