S&P 500 (SPY) Report – 05/01/24
Good morning, traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
April proved to be a challenging month for U.S. stock markets, ending in a downturn for all three major indexes. The Dow Jones Industrial Average lost 5%, marking its worst month since September 2022, while the S&P 500 and the Nasdaq Composite fell approximately 4.25% – 4.5% respectively. This decline snapped a five-month winning streak for the S&P 500, despite it having risen over 20% from a low in October. The market turmoil was influenced by a variety of factors, including disappointing labor market data which showed an unexpected increase in employment costs, fueling ongoing inflation concerns.
On a brighter note, Amazon reported impressive quarterly earnings that exceeded expectations, with its stock rising about 2% in premarket trading. The company’s operating income surged over 200% year-over-year to $15.3 billion, and net income more than tripled to $10.4 billion. This growth was driven by a 24% increase in advertising revenue and a 17% rise in sales from Amazon Web Services, reflecting successful cost-cutting measures and operational adjustments.
Meanwhile, the Federal Reserve concluded its meeting with no changes to the interest rate, maintaining it between 5.25% and 5.5%. The decision was anticipated by traders, who see a slim chance of any rate adjustments in the near term due to recent warm inflation data. However, the Fed hinted at potential rate cuts later in the year and announced a reduction in the pace at which it is reducing its bond holdings.
Closing the month, U.S. stocks dipped significantly on the final trading day, as Wall Street processed the hotter-than-expected labor data alongside anticipation of the Fed’s rate decisions and strong corporate earnings from Amazon. This complex economic landscape reflects the ongoing challenges and adjustments facing investors and policymakers amid fluctuating market conditions and persistent inflationary pressures.
Wednesday Economic Events:
MBA Mortgage Applications 7:00am
ADP Employment Report 8:15am – High Volatility Expected
Treasury Refunding Announcement 8:30am
PMI Mfg Final 9:45am
ISM Mfg Index 10:00am
JOLTS 10:00am
EIA Petroleum Report 10:30am
FOMC Announcement 2:00pm – High Volatility Expected
Fed Chair Press Conference 2:30pm – High Volatility Expected
3-10 Yr Note Announcement 8:30am
30-Yr Bond Announcement 8:30am
Fed Speaker Scheduled:
Fed in Blackout Period Until May 2nd
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