Will the S&P 500 Index Continue to Surge In March 2023?
07 Março 2023 - 06:11PM
After a four-week losing streak,
Dow Jones Industrial Average gained 1.8% last week, while the
S&P 500 and
Nasdaq rose 1.9% and 2.6%, respectively, in the last
five trading sessions.
Equity markets gained pace on
Friday as treasury yields inched lower from recent
The yield on the 10-year treasury
note moved below 4%, which was a key trigger for Wall Street. This
rate impacts mortgages as well as car loans, so if the yield
breakouts, it could easily create a ripple in the U.S.
In an interview with CNBC,
Yung-Yu Ma, a Wealth Manager and Chief Investment Strategist with
BMO, stated, “The stock market is very sensitive to bond yields at
this point and looking for some respite to the recent upward moves
in yields. There’s a nervous anticipation to upcoming data releases
for jobs and inflation after the difficult readings last month. The
market is unlikely to have sustained traction until data points
resume a cooling trend.”
Let’s see if the S&P 500
index will continue to gain pace in the upcoming week and what the
investors should expect right now.
CrowdStrike earnings expected this
CRWD) is scheduled to
announce its fiscal Q4 of 2023 earnings (ended in January) on March
7. Analysts tracking CRWD stock expect the company’s revenue to
rise by 45% year over year to $625 million. Comparatively, its
adjusted earnings are forecast to rise by close to 50% to $0.43 per
share in the January quarter.
Down 50% from all-time highs,
CRWD stock is valued at a market cap of $29.5 billion. CrowdStrike
remains a top long-term bet for investors as the company estimates
its total addressable market to expand from $76 billion in 2023 to
$158 billion by 2026. It ended the last quarter with $2.34 billion
in annual recurring revenue.
Labor market under the radar
The Job Openings and Labor
Turnover Survey (JOLTS) report for January will be released by the
Bureau of Labor Statistics (BLS) on Wednesday, with job openings
expected to have decreased to 10.6 million from 11 million in
ADP will also release its
National Employment Report on the same day, with private sector payrolls predicted to
have increased by 185,000 in February. The February nonfarm
payrolls report from the BLS is due on Friday, with economists
expecting a gain of 200,000 jobs and the unemployment rate to
remain at 3.4%. In January, 517,000 jobs were added, marking the
strongest job growth in six months.
Jerome Powell, the Fed Chair, is
scheduled to testify before the U.S. Senate Banking Committee on
Tuesday and the House Financial Services Committee on Wednesday to
discuss the country’s monetary policy.
The Fed is expected to raise
interest rates more aggressively in the upcoming months in response
to higher-than-expected inflation figures in January. Wall Street
now predicts up to four additional rate hikes of 25 basis points
this year, according to fed funds futures data published by CME
Group. This could lead to a terminal fed funds rate between 5.5%
and 5.75% by September.
President Biden will present his
budget proposal to Congress on Thursday, which is expected to
include tax hikes for billionaires and upper-income households but
not for those earning less than $400,000 annually. The announcement
comes as the government is facing an impasse on the debt ceiling,
and if an agreement isnU+02019t reached, it could run out of money
to pay its bills by summer.
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