Hey team. U.S. stock index futures moved higher on Friday, setting the stage for potential record highs in the S&P 500 and Nasdaq. The move comes as investors look ahead to a key inflation report.
Let’s see what’s ahead for this market!
Impact Snapshot
🟥 PCE Inflation - 8:30am
🟥 Consumer Sentiment - 10:00am
Macro Viewpoint
Stocks rose as the U.S. made progress toward trade agreements with China and other key partners, while growing expectations for Federal Reserve interest-rate cuts this year added to the market’s momentum.
Futures on the S&P 500 added 0.2% after the index advanced to within striking distance of a record on increased expectations for Fed easing. The Nasdaq 100 achieved the feat on Thursday.
As the S&P 500 Index is nearing an all-time high, market breadth has not improved. Among the 11 S&P sectors, information technology, industrials and communication services are the only three that have touched all-time highs.
A narrow market breadth raises correction risks for longer term horizons. The percentage of members trading above their 200-DMA hasn’t budged since May.
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