S&P 500 (SPY) Report – 08/31/23

Good morning traders!

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

U.S. stock futures are on the rise, driven by anticipation of significant economic data releases. Today, the personal consumption expenditure (PCE) price index, including the core PCE that excludes volatile food and energy prices, will be unveiled. This index, a preferred gauge of inflation for the Federal Reserve, is predicted to show a deviation from recent downward trends, indicating a continued increase in July’s prices. The focus, however, remains centered on the impending jobs report for August, as it could influence the Federal Reserve’s upcoming interest-rate policy meeting.

Futures for the Dow Jones Industrial Average gained 191 points, S&P 500 futures rose 0.3%, and Nasdaq futures climbed 0.2%, signaling a positive sentiment. The core PCE index exhibited an annual price growth of 4.2% in July, slightly surpassing June’s 4.1%, with a month-over-month stability at 0.2%. Amid market speculation on whether the Federal Reserve will hike or cut interest rates, the economy’s strength or weakness plays a pivotal role. A robust economy could deter rate cuts, while signs of frailty might prompt a more accommodating stance from the central bank.

Although investors are closely watching the data to shape their rate hike expectations, the forthcoming U.S. jobs report for August remains the focal point, impacting the debate between a hard or soft economic landing. This week’s mixed economic data has increased uncertainty, making the jobs report a crucial determinant of market trajectory. Moreover, investors are closely assessing the core PCE index, which reflects the Fed’s preferred measure of inflation, to gauge the economy’s health. The data’s indication of inflation moderation could align with the central bank’s objectives.

Thursday Economic Events:
Challenger Job Cut 7:30am ET
Jobless Claims 8:30am ET – High Volatility Expected
Personal Income and Outlays 8:30am ET – High Volatility Expected
Chicago PMI 9:45am ET
EIA Natural Gas Report 10:30am ET
Farm Prices 3:00pm ET

Fed Speaker Scheduled:
Susan Collins 9:00am ET


DailyBubble’s Disclaimer
This article provided by the DailyBubble team should only be considered as informational and/or entertainment by the reader. DailyBubble makes no representation to buy or sell any security or financial instrument within the article. Readers seeking investment advice should seek independent financial advice from a professional, and independently research and verify. The DailyBubble team wrote this article and may express its own opinions therein.

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