S&P 500

US equity futures have extended gains while US inflation expectations declined. With S&P 500 and Nasdaq futures clearing resistance, USD remains strained ...

[inflation](https://www.dailyfx.com/topics/inflation)expectations fall to 5% (from 5.2%) ahead of US CPI – has inflation peaked? As bulls continued to drive price action higher, SPX futures extended gains driving prices back above 3950. [Tammy Da Costa](https://www.dailyfx.com/authors/Tammy_Da_Costa) using TradingView [Economic Calendar](https://www.dailyfx.com/economic-calendar#next-seven-days) [The QuizDiscover what kind of forex trader you are](https://www.dailyfx.com/research/dna-fx) [@Tams707](https://twitter.com/Tams707) [DailyFX](https://www.dailyfx.com) provides forex news and technical analysis on the trends that influence the global currency markets. [ Recommended by Tammy Da CostaGet Your Free Top Trading Opportunities Forecast](https://www.dailyfx.com/free-trading-guides#forecastschoices=TOP) [DailyFX education section](https://www.dailyfx.com/education)to learn more about [how central banks impact forex markets](https://www.dailyfx.com/education/forex-fundamental-analysis/how-central-banks-impact-forex.html) [ Recommended by Tammy Da CostaGet Your Free Equities Forecast](https://www.dailyfx.com/free-trading-guides#forecastschoices=EQUITIES) [growth outlook](https://www.dailyfx.com/topics/gdp-news) remains under pressure, renewed hopes of a Fed pivot and lower yields assisted in driving [USD](https://www.dailyfx.com/usd) lower, fueling an equity rally. [NFP](https://www.dailyfx.com/nfp) (non-farm payroll report) was met with mixed reactions. [unemployment rate](https://www.dailyfx.com/education/macro-fundamentals/employment.html) falling to multi-decade lows at 3.5%, softer wage [growth](https://www.dailyfx.com/topics/gdp-news) and [weak ISM data](https://www.dailyfx.com/news/forex-fx-usd-us-dollar-sinks-to-support-after-pmis-cpi-data-ahead-20230109.html) indicated a slowdown in the economy suggesting that price pressures may continue to ease. [symmetrical wedge formation highlighted by James Stanley last week](https://www.dailyfx.com/news/spx-es-spy-sp-500-nasdaq-dow-jones-range-through-fomc-minutes-nfp-on-deck-20230104.html), a move above 3900 drove S&P 500 higher before peaking at 3928. [S&P 500](https://www.dailyfx.com/sp-500)futures rise above critical resistance while 4000 [psychological level](https://www.dailyfx.com/education/understanding-the-stock-market/stock-market-psychology.html)looms [Nasdaq](https://www.dailyfx.com/nas-100)100 futures boosted by tech stocks – can prices return to 11,500?

The S&P 500 index erased early gains to close nearly flat on Monday as expectations that the Federal Reserve will become less aggressive with its interest ...

[(.SPLRCT)](https://www.reuters.com/quote/.SPLRCT) gained as Treasury yields fell. [(.DJI)](https://www.reuters.com/quote/.DJI) fell 112.96 points, or 0.34%, to 33,517.65, the S&P 500 [(.SPX)](https://www.reuters.com/quote/.SPX) lost 2.99 points, or 0.08%, to 3,892.09 and the Nasdaq Composite [(.IXIC)](https://www.reuters.com/quote/.IXIC) added 66.36 points, or 0.63%, to 10,635.65. A consumer prices report due Thursday could be key for rate expectations, said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, North Carolina. [(M.N)](https://www.reuters.com/companies/M.N) fell 7.7% and Lululemon Athletica Inc [(LULU.O)](https://www.reuters.com/companies/LULU.O) dropped 9.3% after both retailers issued disappointing holiday-quarter forecasts. [(AVGO.O)](https://www.reuters.com/companies/AVGO.O) fell in late trading to end down 2% after Bloomberg, citing people familiar with the matter, [reported](/technology/apple-drop-key-broadcom-chip-2025-in-house-design-bloomberg-news-2023-01-09/) that Apple Inc [(AAPL.O)](https://www.reuters.com/companies/AAPL.O) plans to drop a Broadcom chip in 2025 and use an in-house design instead. [(TSLA.O)](https://www.reuters.com/companies/TSLA.O) shares rose 5.9% after the electric-vehicle maker indicated [longer waiting times](/business/autos-transportation/tesla-delivery-time-is-longer-some-china-models-after-discounts-2023-01-09/) for some versions of the Model Y in China, signaling the recent price cuts could be stoking demand. Consumer discretionary stocks [(.SPLRCD)](https://www.reuters.com/quote/.SPLRCD) also rose, with Amazon.com Inc [(AMZN.O)](https://www.reuters.com/companies/AMZN.O) up 1.5% after Jefferies said it saw cost pressures easing for the e-commerce giant in the second half of the year. [The Thomson Reuters Trust Principles.](https://www.thomsonreuters.com/en/about-us/trust-principles.html) [(.IXIC)](https://www.reuters.com/quote/.IXIC) ended well off the day's highs. [(.SPX)](https://www.reuters.com/quote/.SPX) erased early gains to close nearly flat on Monday as expectations that the Federal Reserve will become less aggressive with its interest rate hikes were offset by lingering worries about inflation. Register for free to Reuters and know the full story NEW YORK, Jan 9 (Reuters) - The S&P 500 index

12:07pm: Jobs report "ticked every box," analyst says At midday, the Dow was up 242 points, 0.7%, to 33873, the Nasdaq Composite added 222...

“This week also marks the start of the earnings season, with proceedings being opened by the likes of Bank of America, Citigroup and JP Morgan,” Hunter continued. “If Friday’s price action tells us anything it’s that investors really want to believe the peak inflation narrative that has helped support the rebound in equity markets that we’ve seen so far this year,” said Michael Hewson, chief market analyst at CMC Markets UK. "Jobs growth was good but not too much, participation improved, wage growth moderated and revisions to the November data eradicated any fears that the report initially triggered. According to online retail trading platform, Capital.com, bullish market sentiment on Tesla stock appears to be on the rise, reflected by the surge in trading volumes and the growing number of long CFD positions in the stock in the past week. The embattled retailer warned recently that it could go bankrupt. In between was the S&P 500 which ended little changed. Stocks ended the week in the green, with the S&P 500 closing 2.8% higher at 3,895, the Nasdaq Composite up 2.6% at 10,569, and the DJIA rounding out the pack with a gain of 2.1% to close at 33,631. "Last week's jobs report ticked every box," said Craig Erlam, senior market analyst, UK & EMEA, at OANDA . Just after the market opened, the Dow Jones Industrial Average had added 162 points or 0.5% at 33,793 points, the S&P 500 was up 25 points or 0.6% at 3,920 points, and the Nasdaq Composite had gained 111 points or 1% at 10,5673 points. Stocks on the move included Tesla Inc. At midday, the Dow was up 242 points, 0.7%, to 33,873, the Nasdaq Composite added 222 points, 2.1%, to 10,792 and the S&P 500 improved 49 points, 1.3%, to 3,944. At the close the Dow Jones Industrial Average was down 113 points, or 0.33%, to 33,518, the S&P 500 fell 3 points, or 0.08%, to 3,892 but the Nasdaq Composite jumped 66 points, or 0.63%, to 10,636.

The S&P 500 index erased early gains to close nearly flat on Monday as expectations that the Federal Reserve will become less aggressive with its interest ...

Investing.com -- The S&P 500 gave up gains Monday, as value sectors of the market including financials partly offset tech strength as Treasury yields continued ...

Morgan Stanley's Michael Wilson said that while investors are generally pessimistic about the outlook for economic growth, corporate profit estimates are indeed ...

part in 2025, according to people familiar with the situation. Still, the rising threat of an economic contraction has done nothing to dissuade Corporate America from spending big on its own shares. 24 low to over 20%. Elsewhere, equities in developing nations entered a bull market amid a rally fueled by optimism over China’s reopening and a weakening dollar. The Dow Jones Industrial Average underperformed, while the Nasdaq 100 rose thanks to gains in big tech, with Tesla Inc. Morgan Stanley’s Michael Wilson said that while investors are generally pessimistic about the outlook for economic growth, corporate profit estimates are indeed still too high. The figures will be among the last such readings Fed officials will see before their Jan. The S&P 500 failed to stay above the key 3,900 level, erasing an advance that reached almost 1.5%. “It could be a recipe for choppy near-term and long-term trading.” Her Atlanta counterpart Raphael Bostic noted that policymakers should hike above 5% by early in the second quarter and then go on hold for “a long time.” Investors also awaited Thursday’s US CPI report that will come out almost a week after the latest jobs data showed that wage growth has decelerated. The dollar and Treasury yields pared their declines.

US stocks were set to fall much further than many pessimists anticipated with a recession likely to add to their losses, Morgan Stanley strategists said.

However, equity strategists - including at Morgan Stanley - continue to urge investors that valuations remain elevated amid wide expectations that earnings ...

That is one way the consensus could be right directionally, but wrong in terms of magnitude,” the strategists added. This is in stark contrast to the other popular narrative we hear from the buy and sell side—i.e., that higher inflation is good for nominal GDP and, therefore, revenues and profits,” they wrote in their regular weekly note to clients. On this score, the surprise might be how much lower stocks could trade (3,000) if a recession arrives.” “Back in August, we first warned that peaking inflation is a positive for bonds, but it's also very negative for profitability. Given that the Fed remains committed to keeping high rates until there is clear evidence inflation is going back to its long-term target of 2%, the markets welcomed the slowdown in wage growth. [S&P 500](/indices/us-spx-500) closed over 2.2% higher last week, buoyed by softer-than-expected wage growth in the U.S.

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window). *. Tech shares gain.

(Additional reporting by Shubham Batra, Amruta Khandekar and Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta and Richard Chang) The technology sector gained as Treasury yields fell. A consumer prices report due Thursday could be key for rate expectations, said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, North Carolina. *

The S&P 500 index closed barely changed on Monday as expectations that the Federal Reserve will become less aggressive with its interest rate hikes were ...

Morgan Stanley analysts have warned the U.S. stock market could plunge by another 22% this year because investors are underestimating corporate earnings.

This "ignores the ramifications of falling prices on profit margins, which is likely to outweigh any benefit from the perceived Fed dovishness equity investors are dreaming about later this year," he wrote. "On this score, the surprise might be how much lower stocks could trade (3,000) if a recession arrives." Stocks have rallied in early 2023, with the S&P up about 2% on Monday following the better-than-expected December jobs report that showed wage growth slowed markedly last month. [slowdown in inflation](https://foxbusiness.com/category/us-economy) weighs on corporate earnings, according to Wilson. Michael Wilson, the chief U.S. [expectation of a recession](https://foxbusiness.com/category/recession) in the first half of the year, investors may be underestimating the risk posed by weaker corporate earnings and a Federal Reserve committed to crushing inflation.