S&P 500, Nasdaq, and the Dow Jones all exhibit positive growth.
The week began well for the financial markets as the Dow Jones Industrial Average rose 377 points, or 1.11%, to 34,246. The S&P 500 increased as well, climbing to 4,137 from 4,137 by 47 points, or 1.14%. The Nasdaq Composite, on the other hand, had the most gains, rising to 11,892 by 174 points, or 1.48%.
Performance of the Nasdaq Composite Yearly
The Nasdaq Composite has grown by 13.6% so far in 2023, but it is still 25.9% below its record high from November 2021.
Before the January inflation data, the market is anticipating
As they wait for the possibly market-moving January consumer price index report, traders are taking it easy on Tuesday. The headline annual CPI inflation rate is predicted to have decreased from 6.5% in December to 6.2% last month, according to the research. It is also anticipated that the core reading, which includes volatile commodities like food and energy, will decrease from 5.7% to 5.4%.
The core is expected to stay at 0.3%, while the month-over-month readings are forecast to improve by 0.4% from the minus 0.1% recorded in December.
Investor Attitudes Toward Inflation
Investors anticipate a further drop in inflation, which in June hit a 40-year high of 9.1%. Investors have been persuaded by a decline in inflation to think that the Federal Reserve will soon cease raising interest rates, preventing a dramatic contraction of the economy and bolstering corporate profitability.
However, other experts believe that the market rise in 2023 may be susceptible to a stop because of the Fed’s potential to keep borrowing prices higher for longer. Strong resistance for the S&P 500 is located at 4,176, according to Mark Newton, Head of Technical Strategy at Fundstrat, and at 4,188 for S&P futures.