The First Slice for Wednesday, February 28, 2024

In the dynamic world of U.S. stocks, the opening bell on Tuesday saw little change as traders caught their breath ahead of crucial economic data later in the week, notably a closely monitored inflation gauge. This pause follows a recent rally that propelled the S&P 500 by an impressive 11.4% in three months. Richard Hunter, head of markets at Interactive Investor, attributes this surge to a successful earnings season and growing excitement surrounding the potential of artificial intelligence, which has kept the leading indices hovering around record highs.

The Dow Jones Industrial Average dropped 36 points, or less than 0.1%.
The S&P 500 rose 3 points, or less than 0.1%.
The Nasdaq Composite eased 20 points, or 0.1%.

Investors are cautious as they await economic indicators that could shed light on the timing of Federal Reserve interest rate cuts. According to Stephen Innes, managing partner at SPI Asset Management, the ongoing debate over rates persists, with little resolution or change. Eyes are particularly fixed on the PCE (personal consumption expenditure) price index, set to be released on Thursday, as any significant increase in this gauge could extinguish hopes of a rate cut in May.

Throughout the week, investors will also closely monitor comments from various Fed officials, although Tuesday only features a speech from Fed Vice Chair for Supervision Michael Barr. Recent efforts by Fed officials to challenge the notion of imminent rate cuts have impacted the market, driving the yield on the 10-year Treasury from about 3.8% to 4.26%.

While the PCE inflation gauge takes the spotlight, other economic data are also in the mix. U.S. orders for durable goods took a sharp downturn in January, dropping by 6.1%—a more profound decline than economists had anticipated. On the housing front, home prices in the 20 largest metro areas hit record highs in December for the 11th consecutive month, emphasizing the persistent shortage of homes for sale.

In addition to economic factors, investor sentiment remains influenced by corporate news. Notably, Zoom Video Communications saw a 10% surge in shares following strong results, while Unity Software experienced a 20% decline after disappointing earnings and forecasts…………[read more]

*Click on the “First Slice” icon to read the full article. After you read it, come back and tell us your thoughts.

0 0 votes

Article Rating

☕️ **Discover Stone Street Coffee Company – Your Coffee Haven!** Today’s Dough readers, if you’re on the hunt for exceptional coffee and cold brew, look no further than Stone Street Coffee Company. We at Today’s Dough are smitten with their rich coffee blends and refreshing Cold Brew. Stone Street’s commitment to quality shines through in every sip. Now, exclusively for our readers, click the banner above to snag a $5 off coupon on your next order. Experience the finest, ethically sourced beans roasted to perfection. Join the Stone Street community, savor top-notch coffee, and elevate your daily brew. ☕️🌟