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Nasdaq, S&P 500, Dow: Indices Soar, CPI and Fed Decisions Awaited

By:
Arslan Ali

S&P 500 eclipses the 5000 mark, a bullish beacon ahead of pivotal CPI data and Federal Reserve's upcoming decisions

Indices Recap

In this article:

Key Insights

  • S&P 500 surpasses 5000 milestone, signaling bullish market despite Fed’s rate cut caution.
  • NASDAQ approaches record high, reflecting tech optimism amid inflation and policy uncertainty.
  • DOW’s resilience highlights mixed market sentiment, eyeing key CPI data for future direction.

Financial Markets Brace for CPI: SPX, NASDAQ, and DOW in Focus

Last week saw the S&P 500 marking a historic close above 5000, climbing 1.4% amidst Federal Reserve officials’ comments emphasizing the need for continued disinflation prior to any interest rate cuts.

The Dow Jones Industrial Average showed resilience, closing the week flat by overcoming earlier losses, while the Nasdaq Composite soared 2.3%, nearing a record high past 16000. Despite early expectations, market consensus now leans towards a rate cut not before May, with the Federal Reserve hinting at only three reductions in 2024.

The upcoming week’s focus is on the CPI inflation data for January, which could significantly affect the Fed’s policy decisions and investor outlook. This crucial data, alongside consumer sentiment, retail sales, and housing market updates, will likely dictate future market movements across SPX, NASDAQ, and DOW, shaping the broader financial narrative.

About the Author

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.

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