Good morning traders!
The S&P 500 ($SPY) is trading above Friday’s close. Let’s get into it…
US stock futures are trading slightly higher Monday morning as banking shares climbed, with regional bank stocks rising broadly in premarket. The focus this week will be on inflation data releases, with the consumer price index due on Wednesday and the producer price index on Thursday. Following last week’s rate decision from the Federal Reserve, traders are not expecting a hike at the next policy meeting. The market is hoping inflation remains subdued, but only if inflation cooperates. The US labor market is still strong, which is good news for the economy as it means a recession is less likely. The April jobs report showed that the US added 253,000 jobs, which was better than expected and the stock market responded positively.
However, there are still concerns about the banking sector and the Federal Reserve’s approach to interest rates, which could impact the economy. Over the weekend, Warren Buffett commented on a slew of topics, including the latest banking crisis, but said deposits should be safe in the banking sector. Despite concerns raised by Warren Buffett about a possible downturn, the earnings season has been better than expected, with S&P 500 companies having their best relative earnings season since the end of 2021. Also, more than half of companies issuing full-year guidance have delivered a positive surprise, which is a good sign for the economy.
Monday Economic Events:
Wholesale Inventories 10:00am ET
Investor Movement Index 12:30pm ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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