S&P 500 (SPY) Report – 04/17/24

Good morning, traders!

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

U.S. stock futures saw an uptick early Wednesday, as the S&P 500 looked to recover from recent losses, emphasizing investor interest in forthcoming quarterly earnings over concerns about interest rates. The futures for the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 all rose slightly, following a period of three consecutive days of losses. This shift in focus to corporate earnings comes after a rocky period marked by geopolitical tensions in the Middle East and uncertainties surrounding the Federal Reserve’s future interest rate cuts.

Federal Reserve Chair Jerome Powell’s recent comments cast a shadow over expectations for an imminent easing of interest rates, pushing back the anticipated timeline for cuts from September to December. Powell’s remarks underscored persistent inflationary pressures, leading to adjustments in market predictions for rate reductions. These comments came in the backdrop of robust earnings reports from major banks, which suggested resilience in Wall Street’s performance, raising hopes for a broader market uplift driven by positive earnings results.

On the corporate front, United Airlines saw a notable 5% increase in premarket shares after exceeding revenue expectations, while ASML, a key player in the semiconductor equipment sector, experienced a 4% drop following disappointing order figures. The broader earnings landscape remains a focal point for investors, with upcoming financial updates from significant firms like Abbott Labs, Citizens Financial Group, and US Bankcorp anticipated to further influence market dynamics.

Moreover, the overall market response has been mixed amid geopolitical tensions following Iran’s missile strike on Israel, with oil prices dropping despite the rising regional conflict. This scenario, coupled with Powell’s cautious stance on rate cuts, suggests that the markets are currently more influenced by specific economic indicators and corporate earnings than immediate geopolitical escalations. The interplay between these factors continues to shape investor strategies as they navigate through prevailing uncertainties and look towards potential rate adjustments later in the year.

Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
Atl. Fed Business Expect. 10:00am ET
EIA Petroleum Report 10:30am ET
20-Yr Bond Auction 1:00pm ET
Beige Book 2:00pm ET
Treasury Int. Capital 4:00pm ET

Fed Speaker Scheduled:
Loretta Mester 5:30pm ET
Michelle Bowman 6:30pm ET

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