S&P 500 (SPY) Report – 06/22/23
Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
Stock futures trade lower this morning, as investors proceed with caution as they take into account the recent statements made by Jerome Powell. Fed Chair Powell faces a complex situation, which he discussed during his Congressional testimony. He finds himself in a position where he has to explain why interest rates may need to increase, even though the decision was recently made to keep them as is. His view is that the magnitude of the rate increase is more crucial than the speed at which it occurs.
Increased rates take time to show their effects. There are concerns that current rate hikes might cause significant disruptions in the future, like a delayed tsunami following an earthquake.
The Fed plans for about two more slight rate increases this year, but Powell may not place too much emphasis on that. He might not know the ideal level for the rates yet, but he believes he will recognize it when it happens.
On the other hand, there has been a recent surge of optimism in the market driven by speculation that inflation is slowing down enough for the Fed to potentially pause its rate hikes in the near future. This sentiment, along with a boost in tech stocks due to advancements and rising interest in artificial intelligence, has served to balance out the overall caution. Investors are now in a state of anticipation, keeping a close eye on Powell’s testimony before Congress, significant stock movements, and other relevant market news. The current market atmosphere highlights the need for adaptability and staying updated in order to successfully navigate possible trading opportunities and risks.
Thursday Economic Events:
Initial Jobless Claims 8:30am ET – High Volatility Expected
Chicago Fed Activity Index 8:30am ET
Current Account 8:30am ET
Existing Home Sales 10:00am ET – High Volatility Expected
Leading Indicators 10:00am ET
EIA Natural Gas Report 10:30am ET
EIA Petroleum Report 11:00am ET – High Volatility Expected
Fed Speaker Scheduled:
Christopher Waller 4:00am ET
Michelle Bowman 9:55am ET
Jerome Powell 10:00am ET – High Volatility Expected
Thomas Barkin 4:30pm ET
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