S&P 500 (SPY) Report – 03/11/24

Good morning, traders!

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

U.S. stock futures saw a decline on Monday, following a week of losses, reflecting investors’ anticipation and caution ahead of upcoming inflation data. This data is crucial as it could influence the Federal Reserve’s decisions on interest rates. Specifically, the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 futures all experienced slight drops, indicating a cautious approach from investors, particularly after a less certain jobs report from February that showed strong hiring but mixed signals on unemployment.

The market is now focusing on the Consumer Price Index report due on Tuesday, seen as a significant factor before the Fed’s policy meeting on March 20. The Federal Reserve, under Chair Jerome Powell, has expressed the need for more evidence of cooling inflation before considering reducing borrowing costs. This upcoming report could, therefore, play a pivotal role in shaping the Fed’s monetary policy, especially if inflation does not show the expected slowdown.

In contrast to the stock market, Bitcoin has seen remarkable gains, hitting a new record high above $71,000. This surge in Bitcoin has also positively impacted related stocks, with notable increases in shares of companies like Coinbase, Marathon Digital Holdings, and MicroStrategy in premarket trading. This uptrend in the cryptocurrency sector contrasts with the cautious, bearish sentiment observed in the broader stock market.

As investors prepare for key economic reports this week, including the consumer and producer price indexes, there’s a mixed outlook on the Federal Reserve’s actions regarding interest rates. Recent employment data presents a complex picture, suggesting possible changes in the Fed’s approach to monetary policy. However, experts like Mike Dickson from Horizon Investments caution against expecting immediate rate cuts, pointing towards a more prolonged period of observation before any decisive action is taken by the Fed.

Monday Economic Events:
3-Yr Note Auction 1:00pm ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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