S&P 500 (SPY) Report – 04/11/24

Good morning, traders!

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

U.S. stocks traded steady in premarket trading but found some relief after the Producer Price Index (PPI) for March showed a smaller increase than anticipated, growing by just 0.2% from the previous month. This slower growth in producer prices, which was below economists’ forecasts, helped calm investor concerns that had been sparked by an unexpected rise in consumer prices the day before. The year-over-year increase in PPI also fell short of predictions, though it marked the quickest rise in nearly a year.

The reaction to this news came on the heels of a significant market reaction to March’s consumer price index (CPI) report, which exceeded expectations and led to a drop in stock prices. The surprising CPI data led investors to adjust their expectations for future Federal Reserve actions, with the market now anticipating possibly only two rate cuts in 2024, later than previously expected. Some analysts even suggest that depending on economic developments, there could be no cuts or possibly a rate increase.

On the international front, the European Central Bank (ECB) maintained its interest rates at record highs but signaled that rate cuts could be expected soon. This news comes amidst other concerns affecting the market, such as rising oil prices due to tensions between Israel and Iran. Despite these pressures, there’s hope that upcoming first-quarter corporate earnings reports could provide a boost to stock markets, especially as companies begin to share their financial performances.

The backdrop to these market movements includes the Federal Reserve’s stance on interest rates. At their last meeting, Fed policymakers decided to keep rates steady, aiming to see inflation move closer to their 2% target before enacting further rate cuts. This cautious approach is in light of recent inflation data running hotter than preferred, impacting traders’ expectations for future rate adjustments.

Thursday Economic Events:
Jobless Claims 8:30am ET – High Volatility Expected
PPI-Final 8:30am ET – High Volatility Expected
EIA Natural Gas Report 10:30am ET

Fed Speaker Scheduled:
John Williams 8:45am ET
Thomas Barkin 10:00am ET
Susan Collins 12:00pm ET
Raphael Bostic 1:30pm ET

DailyBubble’s Disclaimer
This article provided by the DailyBubble team should only be considered as informational and/or entertainment by the reader. DailyBubble makes no representation to buy or sell any security or financial instrument within the article. Readers seeking investment advice should seek independent financial advice from a professional, and independently research and verify. The DailyBubble team wrote this article and may express its own opinions therein.