S&P 500 (SPY) Report – 09/07/23
Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
Stock futures trend downward this morning as indications suggest that the US economy is heating up, leading investors to anticipate that the Federal Reserve might maintain elevated interest rates for an extended period. This sentiment was reinforced after recent data revealed that US services activity reached a six-month peak in August, reflecting the economy’s robustness despite increased borrowing costs. Concurrently, a rise in Treasury yields has negatively impacted tech stocks, although there was a slight relief on Thursday.
In tech news, Apple’s shares have seen a decline following reports that the Chinese government has prohibited its officials from using iPhones. There are also plans to extend this ban to state-owned enterprises. This development poses a significant challenge for Apple, as China is not only its largest international market but also its primary global production hub.
On the global front, the surge in oil prices, which had raised questions about the Federal Reserve’s efforts to control inflation, receded slightly after Chinese trade data did little to allay concerns about a slowdown in the world’s second-largest economy. This slowdown is now being viewed as a potential major risk to the US economy. Furthermore, with the release of discouraging data from Europe, there are growing concerns about diminishing global demand. In this context, the forthcoming update on US initial jobless claims will be crucial in shaping discussions about the Federal Reserve’s interest rate decisions in its upcoming September meeting.
Thursday Economic Events:
Jobless Claims 8:30am ET – High Volatility Expected
Productivity and Costs 8:30am ET
Quarterly Services 10:00am ET
EIA Natural Gas Report 10:30am ET
EIA Petroleum Report 11:00am ET – High Volatility Expected
Fed Speaker Scheduled:
Patrick Harker 10:00am ET
Austan Goolsbee 11:45am ET
John Williams 3:30pm ET
Raphael Bostic 3:45pm ET
Michelle Bowman 4:55pm ET
Raphael Bostic 7:00pm ET
Lorie Logan 7:05pm ET
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