During the week the S&P 500 experienced a mix of gains and losses, reflecting a generally volatile period. The index opened the week at 5.305 and closed it at 5.304. Highest weekly level reached was 5.335 in Thursday's trading session. Although the index gained only 0.03% for the week, still, Friday's trading session brought 0.7% in daily earnings, supported mostly by Nvidia. Namely the shares of this company surged 2.6% on Friday, as frenzy over AI and earnings of this company still holds investors sentiment.
Aside from confidence in AI, the market continues to be concerned over the next move of the Fed when interest rates are in question. This sentiment continues to bring volatility to the S&P 500 and will be a significant factor also in the future period. The CME FedWatch Tool is now showing that traders are currently pricing around 50% probability that the Fed will cut interest rates in September. In a week ahead, US PCE data for April will be posted, which might bring back some higher volatility on the market. Still, despite concerns over inflation, the S&P 500 remained relatively resilient in the past period, supported by the tech companies. There is a high probability that this will be the case also in the near future.
Aside from confidence in AI, the market continues to be concerned over the next move of the Fed when interest rates are in question. This sentiment continues to bring volatility to the S&P 500 and will be a significant factor also in the future period. The CME FedWatch Tool is now showing that traders are currently pricing around 50% probability that the Fed will cut interest rates in September. In a week ahead, US PCE data for April will be posted, which might bring back some higher volatility on the market. Still, despite concerns over inflation, the S&P 500 remained relatively resilient in the past period, supported by the tech companies. There is a high probability that this will be the case also in the near future.
