Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
It’s been a rough year for the US stock market, particularly large tech. This time, it was fueled by good economic data, which revived fears that the Federal Reserve will remain hawkish, as well as a dismal forecast from chipmaker Micron ($MU). It also didn’t help that billionaire hedge fund manager David Tepper said he’s “leaning short” on the stock market. The tech-heavy Nasdaq Composite index sank another 2.2% on Thursday, bringing its 2022 loss to more than 33%. According to Dow Jones Market Data, the index is on course to decrease in all four quarters for the first time ever.
In a year marked by increasing interest rates, among other things, Big Tech companies have taken a beating. FAANG stocks—parent Facebook’s company Meta, Apple, Amazon, Netflix, and Google’s parent company Alphabet—have lost $3.03 trillion in market value in 2022, accounting for about 25% of total market cap loss in the United States. Amazon.com stock fell below its 2020 pandemic low for the first time on Thursday, down about 50% this year. It is one of 26 S&P 500 stocks that are now trading below their 2020 lows, with 45 having fallen below that level at some time. In the long run, such declines can provide great buying opportunities. However, with more rate rises on the way and a possible recession in 2023, investors may want to wait a little longer.
Potential Intraday Resistance Levels:
50D SMA (1hr): $383.36
Pre-Market High: $382.95
Potential Intraday Support Levels:
EOD VWAP: $378.91
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Friday Economic Events:
Durable Goods Orders 8:30am ET – High Volatility Expected
Personal Income and Outlays 8:30am ET – High Volatility Expected
New Home Sales 10:00am ET – High Volatility Expected
Consumer Sentiment 10:00am 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.