The Best Investment Manager's Guide to the S&P 500: Powell's Address and PCE Data in Focus
In a recent turn of events, the S&P 500 experienced a slight dip on Wednesday, causing investors to pause amidst a recent rally. Key inflation data later this week is eagerly awaited as a catalyst for further market movements.
At 4:00 p.m. ET (2000 GMT), the S&P 500 fell 0.7%, while the Nasdaq fell 0.2% and the Dow Jones Industrial Average was up 0.1%. The S&P 500 and the DJIA had reached record highs the day prior, continuing the positive sentiment generated by the Fed's significant interest rate cut.
Investors are now focusing on the upcoming speeches by several Fed officials, particularly Powell, on Thursday. These speeches are expected to provide more insights into the central bank's plans for further rate cuts. The recent 50 basis point rate cut has initiated an easing cycle, with analysts predicting a total reduction of 125 bps this year.
Additionally, the upcoming PCE data, the Fed's preferred inflation gauge, is set to be released on Friday, influencing the central bank's future decisions on interest rates. On the economic front, housing market concerns were raised as building permits grew less than expected in August.
In the tech sector, Nvidia's stock rose 2% following reports that CEO Jensen Huang had stopped selling shares. Meta Platforms Inc also saw a 0.9% increase after unveiling its augmented reality glasses and AI integration updates.
Flutter Entertainment PLC surged 5% after announcing a stock buyback plan, while Stitch Fix plummeted 39% due to a weaker outlook for revenue growth.
In conclusion, the market is currently in a state of anticipation, with key data releases and Fed speeches shaping future investment decisions. It is crucial for investors to stay informed and adapt their strategies accordingly to navigate through these uncertain times.