To The Moon

Summary of the Last Session

Despite a slight uptick in inflation in February, the $S&P 500(.SPX)$ achieved a record close, rising 1.1% to 5,175.27.

ATH

This marked the ninth consecutive week of at least one record close for the index, with the 17th record close of 2024.

The Dow Jones Industrial Average also rose by 0.6%, while the Nasdaq Composite$$ surged by 1.5%.

The Consumer Price Index (CPI) grew at an annual rate of 3.2% in February, slightly surpassing economists' expectations of 3.1%. However, stocks rallied on the news after an initial pullback at the market opening.

CPI

• Key Events of the Session

1. S&P 500 Record Close: The S&P 500 achieved a record close despite concerns about inflation, marking continued strength in the large-cap index.

2. Inflation Uptick: The CPI for February grew at a slightly higher rate than expected, but stocks rallied as central bankers' predisposition towards rate cuts was considered.

3. Market Responses: US equities rallied on Tuesday following the CPI report, with large caps outperforming small caps. Technology and communication services sectors performed well, while utilities and real estate lagged.

Technology (+2.54%) and communication services (+1.17%) outperformed the broader market indices, while utilities (-0.99%) and real estate (-0.37%) lagged. 3M (+4.97%) and IBM (+3.16%) led the Dow (+0.61%) higher; Boeing (-4.29%) and Nike (-0.89%) were the index's worst performers.

The Nasdaq gained 1.54%, while the "FAAMG" stocks ended higher: $Meta Platforms, Inc.(META)$ (+3.34%), $Amazon.com(AMZN)$ (+1.99%), $Apple(AAPL)$ (+0.28%), $Microsoft(MSFT)$ (+2.66%), Alphabet (+0.49%).

Distortion

$NVIDIA Corp(NVDA)$

Market Scenario

• Rate Cut Expectations: Despite the inflation uptick, some analysts argue that the Federal Reserve may still consider rate cuts in 2024 due to the lack of acceleration in certain inflation components and progress made in the past 18 months.

• Inflation Outlook: Morgan Stanley strategists adjusted their forecasts for core personal consumption expenditures inflation based on the CPI report, highlighting key components such as airfares, healthcare, and financial services.

• Market Performance: Technology and communication services sectors outperformed, while utilities and real estate sectors lagged. Individual stock performances varied, with companies like 3M and IBM leading the Dow higher, while Boeing and Nike were among the worst performers.

Conclusion

Despite concerns about inflation, the S&P 500 achieved a record close, indicating resilience in the market. The slight uptick in inflation was overshadowed by expectations of possible rate cuts and positive market responses. Technology and communication services sectors led the market, while individual stock performances varied. Analysts continue to closely monitor inflation data and its implications for future market trends.

This analysis is provided for informational purposes only and does not constitute financial or investment advice. Investors should conduct their own research and consult with financial professionals before making investment decisions. Past performance is not indicative of future results. Trading in financial markets involves risks, and individuals should carefully consider their risk tolerance before investing.

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@TigerStars @CaptainTiger @Tiger_SG