Will the Tech-Sell Off Continue This Week for the S&P 500?
September 11 2023 - 5:46AM
Finscreener.org
On Friday, stocks experienced a
slight uptick amidst growing concerns that the Federal Reserve
might implement steeper rate hikes than previously
anticipated.
The
S&P 500 broke its
three-day descent, inching up by 0.14% to close at 4,457.49.
The
Dow Jones Industrial Average advanced by 75.86 points, marking a 0.22% rise,
settling at 34,576.59. Meanwhile, the Nasdaq Composite secured a marginal increase of 0.09%, ending the
day at 13,761.53.
However, it wasnU+02019t all
positive news, as the week saw the major indices in the red. The
S&P and Nasdaq declined by 1.3% and 1.9%, respectively,
marking their first weekly drop in the past three weeks. The Dow
rounded off the week with a decline of approximately
0.8%.
The latest economic indicators,
notably the initial jobless claims coming in below expectations,
have sparked renewed apprehension about potential rate hikes. As of
Friday, market
participants, as per CME Group’s Fed Watch tool, are estimating
over a 40% likelihood of a rate bump in November, following an
expected hold in September.
AppleU+02019s Upcoming Showcase
On Tuesday,
Apple (NASDAQ: AAPL)
is set to host its signature fall event. Enthusiasts anticipate the
debut of several new gadgets, including the iPhone 15, iPhone 15
Pro, Apple Watch Series 9, and Ultra 2, along with other tech
innovations.
AAPL stock is down 6% in the last
two trading sessions as China banned the use of iPhones by
government officials. China is the second largest market for Apple,
and sales in this region have tripled in the last ten
years.
Inflation Insights Incoming
The upcoming week begins with an
updated snapshot of inflation. Due Wednesday, the Consumer Price
Index (CPI) figures suggest a monthly jump of 0.4% - the steepest
since January.
Year-over-year, itU+02019s
predicted to surge 3.4%, a tad higher than July’s 3.2%. The core
CPI, steering clear of fluctuating food and energy costs, is
forecast to increase by 0.2% monthly and 4.3% annually, marking a
two-year low and a drop from JulyU+02019s 4.7%.
Thursday brings the Producer
Price Index (PPI) from the Bureau of Labor Statistics, which
provides insight into manufacturers and wholesalersU+02019
inflationary pressure. Predictions show a 0.4% monthly increase, a
slight bump from JulyU+02019s 0.3%, and a yearly rate of 1.3%,
surpassing July’s 0.8%. 2
Retail Report for August
The U.S. Census Bureau will shed
light on AugustU+02019s retail sales this Thursday. Sales,
displayed without inflation adjustments, are believed to have risen
by 0.4%, a dip from July’s 0.7%. It suggests a consistent
five-month growth trend, indicating consumers are still spending
despite mounting borrowing costs and continued
inflation.
ECBU+02019s Rate Rundown
On Thursday, the European Central
Bank (ECB) convenes for a pivotal monetary policy discussion. After
nine consecutive rate increases since last summer, a pause is
expected this time around. Emulating the U.S. Federal
ReserveU+02019s aggressive stance, the ECB has been proactive
against inflation, elevating its foundational deposit rate to a
two-decade high of 3.75% from an all-time low of -0.5% in early
2022.
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