S&P 500 (SPY) Report – 04/11/23

Good morning traders!

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

U.S. stock futures are steady this morning ahead of key inflation data to be released later in the week. This week will be dominated by inflation data and bank earnings. Economists expect March’s consumer price index to climb 0.3%, lowering the year-over-year inflation rate to 5.2%. Additionally, global policymakers will gather in Washington for the IMF and World Bank spring meetings, and the Bank of Canada will announce their policy decision on Wednesday. The tech sector has made a sudden turnaround from an ugly 2022, with some analysts still seeing upside ahead for the sector.

The Federal Reserve Bank of New York’s President John Williams believes recent banking stresses were not caused by the central bank’s monetary policy to lower inflation. He thinks inflation will decrease to 3.75% this year and reach the Fed’s 2% target by 2025. Inflation expectations increased at short- and medium-term horizons but decreased slightly at the longer-term horizon, according to the March Survey of Consumer Expectations. 

Trade Ideas:
The SPY closed making new highs on the day, suggesting that the momentum could carry over into today’s trading. While the EIA Short-Term Outlook is the only notable economic event of the day, the report may have a minimal impact on the S&P 500, tomorrow’s events could bring higher volatility. The CPI data, Crude Oil Inventories report, and FOMC Meeting Minutes are expected to create more significant market movements, with potential for increased volatility towards the end of the session today in anticipation of these events.

Tuesday Economic Events:
NFIB Small Business Index 6:00am ET
Redbook Sales 8:55am ET
EIA Short-Term Energy Outlook  – High Volatility Expected
API Crude Oil Data 4:30pm ET

Fed Speaker Scheduled:
Austan Goolsbee 1:30pm ET
Patrick Harker 6:00pm ET
Neel Kashkari 7:30pm ET

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