S&P 500 (SPY) Report – 04/10/23

Good morning traders!

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

Investors and traders should expect a busy week following the long Easter weekend. In recent reports, the US economy added 236,000 jobs in March, and this solid number is likely to lead to another 25 basis-point interest rate hike in May, potentially the last of the cycle. However, this expectation could change, as US inflation data is expected to be released on Wednesday, and the minutes from the Fed’s late-March meeting will also provide more information about the central bank’s thinking. The beginning of earnings season at the end of the week, with big banks reporting, is likely to have the biggest impact on markets. Tighter lending standards could do the work of rate hikes and alter the Fed’s view on the number of hikes needed. It’s likely to be a difficult earnings season for corporate America, and the S&P 500’s 7% gains in 2023 could be at risk.

Trade Ideas:
Today’s trading plan suggests that the market weakness is expected to persist and there is a possibility that $SPY may reach Thursday’s lows at $405.68.

Monday Economic Events:
Wholesale Inventories 10:00am ET

Fed Speaker Scheduled:
John Williams 4:15pm ET

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