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The S&P 500 (SPY) has managed to break through the all-important 4,000 level. This is great news for stock traders. After all, it seems that the wall of that worry can be overcome! How did things turn around after 2023’s “worst week” so far? Read on to find out.
(Enjoy this updated version of my weekly commentary originally published on March 3, 2023. POWR Stocks Under $10 Newsletter).
Market commentary
The last two days have seen some positive catalysts pushing things in the positive direction and pushing the stock back above the 4,000 level (although we still have a way to go before we retest the all-important 4,100 level).
First, 10-year Treasury yields also fell below 4%. This bodes well for the market.
February’s PMI data also caught the attention of traders. PMI improved to his 50.6, beating analyst consensus of his 50.5. The ISM Non-Manufacturing PMI dropped from 55.2 to 55.1, but still exceeded expectations.
The numbers suggest the economy is growing, but not as fast as some thought, according to Andrew Hunter, deputy chief U.S. economist at Capital Economics.
Most market segments, notably consumer cyclical and real estate stocks, had a good day, with the exception of consumer defensive stocks, which did not see much upside.
This indicates that the trader is still in “risk on” mode. This means that they are now willing to invest in more volatile assets. This is great for our stock under $10.
S&P 500 (spyThis is a big win following last week, which was one of the worst weeks so far this year.
The US Federal Reserve (Fed) also made headlines this week when it released its semi-annual monetary policy report to Congress. This report shows the Fed’s plan to keep raising interest rates to bring inflation back to 2%.
Atlanta Federal Reserve Governor Rafael Bostic has written an essay calling on the central bank to raise the policy rate by 50 basis points to a range of 5% to 5.25% and then hold it there until 2024.
He said he was watching the data closely and would adjust the policy trajectory if necessary.
The Fed will raise its benchmark rate by a quarter percentage point in February and will release a new forecast after its March 21-22 meeting.
As we saw last year, the market could make a big move based on what Fed officials say.
Conclusion
While we’ve seen some bullish wins this week, more needs to happen for the S&P 500 to overtake the critical 4,100 level again.
But our portfolio performed well last year despite the volatility. We expect the same result this year.
what next?
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all the best!
Margrave Meredith
StockNews Chief Growth Strategist
POWR Stocks Under $10 Newsletter Editor
spy stock. Year-to-date, SPY is up 5.69% on him, while the benchmark S&P 500 index rose 10% over the same period.
About the Author: Meredith Margrave
Meredith Margrave has been a prominent financial expert and market commentator for the past 20 years. she is currently Growth of POWR and POWR Stocks Under $10 Newsletter. Learn more about Meredith’s background, with links to her latest articles.
post Will the Stock Market Finally Rebound? first appeared StockNews.com