Last week was the benchmark index's worst weekly performance of the new year so far, as sentiment was dampened by lingering concerns surrounding the Federal Reserve.
Last Friday's explosive jobs report weighed on the mood at the beginning of the week, as market participants fretted that the surge in job openings would keep the pressure on the Fed to continue hiking rates.
Fed chair Jerome Powell on Tuesday calmed markets somewhat after making comments that were less hawkish than expected at an event in Washington, D.C. The central bank chief also did not seem too concerned by the hotter-than-expected jobs report. He reiterated that a "disinflationary process" had begun but that there was still more work to do and more rate hikes ahead.
However, Powell's comments were followed by warnings from a host of Fed speakers on Thursday that more rate hikes would be needed to combat inflation, exacerbating fears that policymakers might need to stay hawkish longer than previously anticipated.
The week also saw the earnings season pick up steam. Major companies that reported their results included entertainment giant Disney (
DIS
), ride-sharing firm Uber (
UBER
), beverage maker Pepsi (
PEP
), payments processor PayPal (
PYPL
) and videogame publishers Activision Blizzard (
ATVI
) and Take-Two (
TTWO
).
Chart: SPX daily
Chart: SPX 15 mins
The week ahead will be dominated by talk of inflation and interest rates with the consumer price index and producer price index reports due out. The Consumer Price Index report for January is forecast to show a 0.5% month-over-month rise with energy prices higher again. The headline year-over-year inflation reading is expected to drop to +6.2% from +6.5% in December. Food prices are seen bumping up from December, while some cooling with air fares and lodging is anticipated. The inflation reads will be accompanied by a heavy slate of Federal Reserve speakers next week, which will ramp up discussion on the pace of interest rate hikes.
From the tech side of analysis, SPX closed right above 21 EMAs (4060ish level) on the daily chart, and moved kinda side way between 4060ish -4100ish on the 15 mins chart. I am expecting the market to move nowhere since the market is waiting for CPI data release and talk of inflation coming out, 4060-4130 is the zoom for play.
Please feel free to express your ideas and thoughts in the comment section.
Last Friday's explosive jobs report weighed on the mood at the beginning of the week, as market participants fretted that the surge in job openings would keep the pressure on the Fed to continue hiking rates.
Fed chair Jerome Powell on Tuesday calmed markets somewhat after making comments that were less hawkish than expected at an event in Washington, D.C. The central bank chief also did not seem too concerned by the hotter-than-expected jobs report. He reiterated that a "disinflationary process" had begun but that there was still more work to do and more rate hikes ahead.
However, Powell's comments were followed by warnings from a host of Fed speakers on Thursday that more rate hikes would be needed to combat inflation, exacerbating fears that policymakers might need to stay hawkish longer than previously anticipated.
The week also saw the earnings season pick up steam. Major companies that reported their results included entertainment giant Disney (
DIS
), ride-sharing firm Uber (
UBER
), beverage maker Pepsi (
PEP
), payments processor PayPal (
PYPL
) and videogame publishers Activision Blizzard (
ATVI
) and Take-Two (
TTWO
).
The week ahead will be dominated by talk of inflation and interest rates with the consumer price index and producer price index reports due out. The Consumer Price Index report for January is forecast to show a 0.5% month-over-month rise with energy prices higher again. The headline year-over-year inflation reading is expected to drop to +6.2% from +6.5% in December. Food prices are seen bumping up from December, while some cooling with air fares and lodging is anticipated. The inflation reads will be accompanied by a heavy slate of Federal Reserve speakers next week, which will ramp up discussion on the pace of interest rate hikes.
From the tech side of analysis, SPX closed right above 21 EMAs (4060ish level) on the daily chart, and moved kinda side way between 4060ish -4100ish on the 15 mins chart. I am expecting the market to move nowhere since the market is waiting for CPI data release and talk of inflation coming out, 4060-4130 is the zoom for play.
Please feel free to express your ideas and thoughts in the comment section.
