S&P 500 (SPY) Report – 04/30/24

Good morning, traders!

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

Stock futures fell on Tuesday as concerns about inflation intensified following higher-than-expected wage data, just ahead of the Federal Reserve’s decision on interest rates set for Wednesday. This anxiety was reflected in the markets, with the S&P 500, Nasdaq, and Dow Jones Industrial Average futures all recording declines. The rise in the employment cost index, which measures wages, surpassed expectations and triggered a jump in Treasury yields, indicating worries about persistent inflationary pressures.

Corporate earnings reports also influenced market movements, particularly those of major companies like McDonald’s and Coca-Cola. McDonald’s shares dropped after the company reported earnings that missed expectations, largely due to boycotts impacting sales in the Middle East. Conversely, Coca-Cola saw its shares decline despite beating earnings estimates and raising its financial outlook, suggesting that broader market concerns might be overshadowing individual corporate successes.

Investor sentiment was further dampened by expectations of the Federal Reserve maintaining higher interest rates for an extended period. The adjustment in rate cut expectations for 2024, from several anticipated cuts to just one, reflects growing concerns over enduring inflation and a resilient economy. This shift has led to a reduction in optimism about potential easing of monetary policy, with markets preparing for a possible hawkish stance from the Fed in upcoming announcements.

Amidst these economic and corporate developments, the financial markets are also bracing for a slew of important economic reports and additional earnings releases. Key tech giants like Amazon and Apple are set to report their quarterly results, which could significantly influence market trends. Additionally, the upcoming jobs report and other economic data will provide further insights into the employment landscape and might influence the Fed’s decisions in their next meetings.

Tuesday Economic Events:
Employment Cost Index 8:30am
Redbook Sales 8:55am
Case-Shiller HPI 9:00am
FHFA HPI 9:00am
Chicago PMI 9:45am – High Volatility Expected
Consumer Confidence 10:00am – High Volatility Expected
Farm Prices 3:00pm
API Crude Oil Data 4:30pm
4-Week Bill Announcement 11:00am 

Fed Speaker Scheduled:
Fed in Blackout Period Until May 2nd

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