S&P 500 (SPY) Report – 12/01/23

Good morning, traders!

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

US stock futures trade slightly below yesterday’s close, following a very successful month of November. This pause in momentum comes as investors anticipate insights from Federal Reserve Chair Jerome Powell regarding the potential for an upcoming interest rate cut. The Dow Jones Industrial Average showed stability, while the S&P 500 and Nasdaq 100 futures saw minor decreases.

November was a notable month for the stock market, showcasing the best monthly performance since 2022. This surge was fueled by investor optimism, initially sparked by expectations that the Federal Reserve would halt rate hikes, and later by the hope of rate cuts before mid-year. 

Today’s focus has now shifted to Jerome Powell’s upcoming statements, as he is expected to provide clarity on the Federal Reserve’s policy direction. This comes especially after data from October suggested a significant reduction in inflation rates, the lowest since 2021. Investors are keenly waiting for Powell’s guidance, given the mixed messages from various Federal Reserve representatives.

In other financial news, oil prices have stabilized after a period of decline. This follows skepticism from investors regarding the effectiveness of OPEC+’s decision to implement additional output restrictions. West Texas Intermediate crude futures were trading at around $76 per barrel, with Brent futures slightly lower. In stock-specific news, Tesla’s stock continued to decline following its Cybertruck delivery event, despite unveiling prices and battery range for the much-anticipated truck.

Friday Economic Events:
PMI Mfg Final 9:45am ET
ISM Mfg Index 10:00am ET – High Volatility Expected
Construction Spending 10:00am ET
Baker Hughes Rig Count 1:00pm ET

Fed Speaker Scheduled:
Michael Barr 3:00am ET
Austan Goolsbee 10:00am ET
Jerome Powell 11:00am ET – High Volatility Expected
Jerome Powell 2:00pm ET – High Volatility Expected

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