Why Tech Is Driving This Selloff: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- Why Tech Is Driving This Selloff
- S&P 500 Weekly Chart: Not A Setup You Want To See
Futures are moderately higher on solid tech earnings and optimism there won’t be a government shutdown drama.
On earnings, AMZN and INTC both posted solid numbers (up 6% and 7% after hours respectively). And that’s helping the tech sector and broader market bounce.
Politically, Speaker Johnson publicly supported passing a short term spending bill. This possibly avoids another shutdown drama.
Today focus will be on inflation, namely the Core PCE Price Index (E: 0.3% m/m, 3.7% y/y) and the five-year University of Michigan Inflation Expectations (E: 3.0%). Lower than expected numbers will remind markets that inflation is falling and depress Treasury yields, and that should extend today’s early rally. Conversely, if the inflation data is higher than expected, don’t be shocked if these early gains are erased as yields rise.
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