The First Slice for Tuesday, February 27, 2024

In the hustle and bustle of the stock market, U.S. stocks saw a dip on Monday as investors geared up for a week filled with crucial economic data and sought fresh catalysts to drive the market upward. Despite a recent surge thanks to Nvidia’s strong quarterly results, the Dow stumbled, partly due to the 2-year Treasury yield hitting its highest mark in three months. Investors, however, seemed to overlook recent earnings reports from Big Tech companies, indicating a broader focus on macroeconomic indicators.

The Dow Jones Industrial Average dropped 62.30 points, or 0.2%.
The S&P 500 declined 19.27 points, or 0.4%.
The Nasdaq Composite fell 20.57 points, or 0.1%.

The optimism in the market stems from better-than-expected earnings and growing excitement around artificial intelligence (AI). Michael Landsberg, Chief Investment Officer at Landsberg Bennett Private Wealth Management, predicts that 2024 could be the year AI takes center stage, with companies reaping the rewards from AI-driven innovations. Yet, he warns that not all companies will succeed in this arena, suggesting that much of the AI hype may prove exaggerated for some.

Looking ahead, this week promises significant data releases, including the revision to fourth-quarter U.S. gross domestic product (GDP) and January’s personal-consumption expenditures (PCE) price index. Analysts are particularly attentive to the PCE data, as it serves as the Federal Reserve’s favored inflation gauge. Expectations are rife, with economists predicting potential shifts in the Fed’s rate-cut outlook depending on the PCE numbers. Investors might anticipate a possible rate cut in May if the data surprises on the cooler side. Conversely, a hotter-than-expected reading could challenge the Fed in its quest to rein in inflation to its 2% target.

Amidst this economic whirlwind, new-home sales data for January showed a modest uptick, adding to the mix of factors influencing market sentiment. Additionally, appearances by several Federal Reserve speakers throughout the week add another layer of anticipation…………[read more]

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