Good morning traders!
The S&P 500 ($SPY) is trading below Friday’s close. Let’s get into it…
US stock futures are trading higher on Tuesday as bank stocks recover from the previous day’s losses and investors digest the latest inflation data. The Consumer Price Index rose 0.4% in February from January, matching economists’ expectations, and annualized inflation increased by 6%, in line with expectations. UBS analysts suggest that the impact of monetary policy tightening of the last several quarters is yet to be fully seen, and they expect a 25 bp rate hike by the Fed later this month, which will depend on the data before the meeting, including the CPI release. Canaccord Genuity’s Head of the U.S. Macro Group and Chief Market Strategist, Tony Dwyer, warns that the risk lies in what cannot be seen and advises clients to look to private markets for the next area of exposure. While there isn’t necessarily another big shoe to drop in terms of an individual bank blowup or systemic market vulnerability, there could be failures that occur at the margins without triggering a broader downturn. Overall, the market sentiment is cautiously optimistic, with investors keeping an eye on inflation data and Fed policies.
The $SPY is trading close to its highs from yesterday, which could potentially act as a level of intraday resistance. Furthermore, we have observed a decrease in selling pressure following the sell-off that occurred last week.
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Tuesday Economic Events:
NFIB Small Business Index 6:00am ET
CPI 8:30am ET – High Volatility Expected
Redbook Sales 8:55am ET
API Crude Oil Data 4:30pm ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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