S&P 500 (SPY) Report – 03/13/24

Good morning, traders!

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

US stocks experienced a positive turn on Tuesday, with notable gains across major indices following hotter-than-expected inflation data, which has set expectations for the Federal Reserve’s future interest rate decisions. The S&P 500 hit a new record high with a 1.2% increase, while the Nasdaq Composite saw a 1.5% rise, thanks to a significant 7% gain by Nvidia. The Dow Jones Industrial Average also saw a rise, albeit more modest at 0.6%, alongside increases in Treasury yields and a decline in gold prices.

The latest Consumer Price Index (CPI) release, a critical measure for the Federal Reserve’s policy decisions, showed a monthly increase of 0.4% in February, aligning with expectations but marking a slight increase from the previous month. The core CPI, which excludes food and energy prices, exceeded estimates with a 0.4% monthly and 3.1% annual rise, signaling persistent inflationary pressures and impacting Federal Reserve rate strategies.

In other financial news, Bitcoin has continued its remarkable rally, surpassing $72,000 and contributing to a 70% gain this year, with predictions of it reaching as high as $350,000. Additionally, Oracle’s shares surged by 12% due to advancements in cloud computing and its collaboration with Nvidia, indicating significant corporate momentum in the tech sector.

Following Tuesday’s market activities, stock futures were relatively stable, indicating a calm response to the new record high of the S&P 500. Despite slight variations, the overall sentiment remains optimistic with expectations that the current economic cycle will continue unless disrupted by a significant shock, according to Gabriela Santos of JPMorgan Asset Management. The focus remains on significant market drivers like Nvidia, which has shown substantial growth this year.

Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
Quarterly Services Survey 10:00am ET
EIA Petroleum Report 10:30am ET – High Volatility Expected
30-Yr Bond Auction 1:00pm ET – High Volatility Expected

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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