S&P 500 (SPY) Report – 10/23/23

Good morning traders!

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

Stock futures took a downward turn this morning, influenced by the rising Treasury yields. Specifically, futures of the Dow Jones Industrial Average decreased by 0.4%, mirroring similar drops in the S&P 500 and Nasdaq 100 futures. The 10-year Treasury note yield saw a significant jump, surpassing the crucial 5% mark. This sudden increase in yields could further dampen an economy that’s already showing signs of weakness, warned Canaccord Genuity Group’s chief market strategist, Tony Dwyer.

The previous week wasn’t rosy for Wall Street either. The S&P 500 witnessed a 2.4% decline, marking its first downturn in three weeks. Concurrently, the Dow Jones Industrial Average fell by 1.6%, while the Nasdaq Composite recorded a 3.2% drop, registering its second consecutive losing week.

This week, however, the stock market’s focus is set on the tech sector as major players like Alphabet, Amazon, Meta, and Microsoft prepare to disclose their earnings. Investors are keenly awaiting these results, anticipating that they will offer critical insights into the stock market’s trajectory. Despite recent hiccups, Ryan Detrick from Carson Group remains optimistic, emphasizing that the underlying fundamentals of the economy remain robust and that the current earnings season might bring better-than-expected results.

Adding to the list of pivotal events this week is the release of significant economic data. The U.S. third-quarter advance report for the Gross Domestic Product (GDP) is slated for Thursday. Furthermore, the personal consumption expenditure, a measure of inflation, is set to be released on Friday. The investment community is on edge, as stronger than anticipated reports might hint at the possibility of another rate hike before the year concludes.

Monday Economic Events:
Chicago Fed National Activity 8:30am ET
3 and 6 Month Bill Auction 11:30am ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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