S&P 500 (SPY) Report – 04/15/24

Good morning, traders!

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

U.S. stock futures experienced a rebound on Monday, rising in response to multiple positive factors despite recent geopolitical tensions. This uptick was propelled by strong first-quarter earnings from Goldman Sachs and encouraging retail data, which together helped to mitigate last week’s broader market downturn. Additionally, hopes that the conflict in the Middle East—specifically the recent Iranian attack on Israel—would not escalate further also played a crucial role in boosting investor confidence.

Over the weekend, Iran executed a direct missile and drone strike on Israel, marking a significant escalation in regional tensions. However, the majority of these attacks were successfully intercepted, and subsequent U.S. diplomatic efforts to prevent an Israeli retaliation have contributed to stabilizing market sentiments. Despite this, the potential for further conflict and its implications on global markets remains a concern, with experts warning that geopolitical shocks could lead to sustained periods of market volatility, particularly if the situation affects oil prices.

In the commodities market, movements were mixed as gold prices showed a slight increase, maintaining their upward trend in response to ongoing geopolitical risks and persistent inflation. Oil prices, however, fell after a previous rally, influenced by the complex dynamics in the Middle East and speculative trading behaviors regarding potential future conflicts and their impact on oil supply channels.

Looking ahead, market focus is expected to remain on corporate earnings and economic indicators. With major firms like Goldman Sachs and Charles Schwab slated to report their earnings, investors are keen to see if the strength of the corporate sector can continue to support market rallies amid ongoing inflation concerns and geopolitical uncertainties. As the situation evolves, the financial markets will likely continue to be sensitive to both economic data and developments in the Middle East.

Monday Economic Events:
Retail Sales 8:30am ET – High Volatility Expected
Empire State Mfg Index 8:30am ET
Business Inventories 10:00am ET
Housing Market Index 10:00am ET

Fed Speaker Scheduled:
Lorie Logan 2:30am ET
Mary Daly 8:00pm ET

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