Good morning traders!
The S&P 500 ($SPY) is trading above yesterday’s close. Let’s get into it…
US stock futures rose Thursday morning, after the market processed a series of new economic data. A notable revelation was the August reading of the producer price index, which surpassed expectations by rising 0.7%. This was in contrast to the anticipated 0.4% increase as predicted by Dow Jones economists. This data came on the heels of the August consumer price index (CPI) reading. The core CPI, which excludes volatile components like food and energy, recorded a 0.3% monthly increase and a 4.3% annual rise. These figures were slightly higher than the 0.2% monthly and the anticipated 4.3% yearly estimates. Overall inflation for August rose by 0.6% monthly and 3.7% annually, slightly surpassing the 0.6% monthly and 3.6% annual predictions.
Despite the unexpected inflation data, the August CPI is not anticipated to sway the Federal Reserve’s decisions in its policy meeting starting Sept. 19. Current data suggests a 97% chance that interest rates will remain stable next week. However, market volatility is expected to persist, with a 40% likelihood of a rate hike in the November meeting. Alex McGrath, the Chief Investment Officer at NorthEnd Private Wealth, commented on the situation, stating, “Given the rising yields, assets that propelled the market in 2023 might seem overpriced, leading to volatility through the year-end.”
In the news, investors are also eyeing key earnings reports due Thursday evening from major players like Adobe, Copart, and Lennar. Tesla saw a positive start to Thursday, trading up by 0.7%. This comes after Ark Innovation ETF (ARKK), led by Cathie Wood, sold 51,155 shares of Tesla as revealed by daily trade disclosures. Despite this sale, Tesla remains the largest holding in the ETF, accounting for an 11.4% position. Meanwhile, tech behemoths Apple and Microsoft showed mixed trading patterns ahead of the stock market’s opening.
Thursday Economic Events:
Jobless Claims 8:30am ET – High Volatility Expected
PPI-Final 8:30am ET- High Volatility Expected
Retail Sales 8:30am ET – High Volatility Expected
Business Inventories 10:00am ET
EIA Natural Gas Report 10:30am ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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.