SPY Technical Analysis for Thursday August 31, 2023
Daily and Hourly Price Ranges: Decoding the Premiums and Discounts
U.S. GDP Grows at Revised 2.1% Rate, Falling Short of Projections
For the fourth consecutive day, the stock market saw gains, largely due to economic indicators that suggest the Federal Reserve may soon halt its cycle of interest rate hikes. The S&P 500 index touched the 4,500 mark, propelled mainly by significant gains in Apple's share price, although regional banks experienced a downturn. In a regulatory move, the Federal Reserve issued discreet warnings to financial institutions with assets ranging from $100 billion to $250 billion, aiming to bolster oversight. Concurrently, Treasury yields experienced a minor decline, and the market now predicts less than a 50% chance of another quarter-point hike in U.S. interest rates this year.
On the economic front, the U.S. GDP grew at a revised annualized rate of 2.1% in Q2, falling short of initial government estimates. Data from the ADP Research Institute and Stanford Digital Economy Lab highlighted a slowdown in job creation, marking the weakest growth in five months.
Internationally, inflation rates in Spain and Germany led to a rise in the euro, giving European Central Bank officials more context as they contemplate another rate hike. Meanwhile, oil prices saw a modest increase following a substantial reduction in U.S. oil inventories.1
SPY Nearly Sweeps Liquidity at 451.70 But Falls Just Short
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