Record-Breaking Days for S&P 500 and Nasdaq: Anticipation of Inflation Data and Earnings Reports Amid Optimistic Economic Landscape

New York, New York, USA United States of America
Dow Jones Industrial Average finished with a slight decline of 31 points or 0.08%
Federal Reserve expected to cut interest rates due to easing inflation and economic weakness
Investors anticipated inflation data and earnings reports
Market sentiment optimistic with expectations of Fed interest rate cut
Morgan Stanley predicted a near-term correction for U.S. stocks with a likelihood of 10%
Nasdaq Composite advanced by 0.28% to reach a new record high of 18,403.74
Piper Sandler warned about potential deeper correction or pullback for the S&P 500
S&P 500 and Nasdaq reached new record highs on July 9, 2024
S&P 500 closed at an all-time high of 5,572.85
U.S. economy added more jobs than anticipated but saw an unexpected rise in unemployment rate to 4.1%
Record-Breaking Days for S&P 500 and Nasdaq: Anticipation of Inflation Data and Earnings Reports Amid Optimistic Economic Landscape

Record-breaking days for the S&P 500 and Nasdaq marked the financial markets on July 9, 2024, as investors eagerly anticipated key inflation data and second-quarter earnings reports from major companies. The economic landscape remained optimistic with expectations of a Federal Reserve interest rate cut due to easing inflation and pockets of weakness in the economy.

The S&P 500 closed at an all-time high of 5,572.85, while the Nasdaq Composite advanced by 0.28% to reach a new record high of 18,403.74. The Dow Jones Industrial Average finished with a slight decline of 31 points or 0.08%, closing at 39,344.79.

The market's positive sentiment was driven by the belief that the Federal Reserve would cut interest rates due to inflation easing and economic weakness. The June consumer price index (CPI) and producer price index (PPI) data were scheduled for release on Thursday and Friday, respectively, which could provide further insight into this possibility.

The U.S. economy added more jobs than anticipated in June but saw an unexpected rise in the unemployment rate to 4.1%. Despite this, traders expected two interest rate cuts from the Federal Reserve in 2024 according to the CME FedWatch Tool.

Piper Sandler issued a warning about a potential deeper correction or pullback for the S&P 500, despite maintaining its year-end target. The firm's technical indicators pointed towards weaker market internals and fewer stocks participating in the rally, which could undermine the sustainability of the current upswing.

Morgan Stanley's chief investment officer, Mike Wilson, predicted a near-term correction for U.S. stocks with a likelihood of 10%. He believed that Nvidia's soaring first-half gain contributed around a third to the S&P 500's advance and warned about expensive names in the market.

Fed Watch Advisors founder Ben Emons expressed concerns about market froth and speculation, particularly in meme stocks. The Federal Reserve also mentioned hedge funds having more leverage and large basis trades, which could have unknown unwinding implications.


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Confidence

96%

Doubts
  • The exact impact of inflation data on interest rate decisions is uncertain
  • The sustainability of the current market upswing could be undermined by weaker market internals and fewer stocks participating in the rally

Sources

76%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Top Wall Street analyst issues stark warning for stocks

Yahoo Finance Martin Baccardax Tuesday, 09 July 2024 17:49
  • Unique Points
    • Morgan Stanley’s chief investment officer, Mike Wilson, predicts a near-term correction for U.S. stocks with a likelihood of 10%.
    • Nvidia’s soaring first-half gain contributed around a third to the S&P 500’s advance.
  • Accuracy
    • Morgan Stanley's chief investment officer, Mike Wilson, predicts a near-term correction for U.S. stocks with a likelihood of 10%.
  • Deception (30%)
    The author expresses his opinion that a correction for stocks is 'highly likely' without providing any concrete evidence or data to support this claim. This is an example of sensationalism and selective reporting as the author only reports details that support his position.
    • > Speaking late Monday on Bloomberg Television, Wilson noted the concentration of gains in tech, and he effectively stuck to his spring target call for the S&P 500, suggesting the 'likelihood of upside from now until year end is very low, much lower than normal.'
    • > The chance of a 10% correction is highly likely sometime between now and the election.
  • Fallacies (80%)
    The author makes an appeal to authority by quoting Mike Wilson's prediction of a stock correction and his bearish outlook on the market. However, this does not constitute a fallacy as long as it is clear that the author is reporting on Wilson's position rather than endorsing it. The author also uses inflammatory rhetoric by describing Wilson as 'Wall Street's most-vocal bear' and stating that he has maintained a 'largely bearish stance on markets for the past three years'. This does not constitute a fallacy but is worth noting as potentially biased language.
    • ][author] Wall Street’s most-vocal bear sees a big correction for U.S. stocks coming, even as benchmarks continue to print records, but he sees the impending pullback as a chance to buy into the market’s next move forward.[/]
    • [author] Speaking late Monday on Bloomberg Television, Wilson noted the concentration of gains in tech, and he effectively stuck to his spring target call for the S&P 500, suggesting the 'likelihood of upside from now until year end is very low, much lower than normal.'[
  • Bias (95%)
    The author expresses a bearish outlook on the stock market and specifically mentions that he sees a correction coming. He also mentions that the concentration of gains in tech stocks is a factor in his bearish view. This could be seen as an example of monetary bias as the author is expressing concern over high stock valuations and potential for a correction due to market conditions.
    • FactSet data suggest that stocks are trading at historically rich valuations.
      • Morgan Stanley’s Mike Wilson sees a big correction for U.S. stocks coming
        • Speaking late Monday on Bloomberg Television, Wilson noted the concentration of gains in tech, and he effectively stuck to his spring target call for the S&P 500, suggesting the ‘likelihood of upside from now until year end is very low, much lower than normal.’
          • The average company has not had good earnings results.
          • Site Conflicts Of Interest (100%)
            None Found At Time Of Publication
          • Author Conflicts Of Interest (100%)
            None Found At Time Of Publication

          76%

          The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
          (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

          A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

          Is the stock market way too hot?

          Yahoo Finance Brian Sozzi Tuesday, 09 July 2024 17:50
          • Unique Points
            • Fed Watch Advisors founder Ben Emons expressed concerns about market froth and speculation in meme stocks.
            • The Federal Reserve mentioned hedge funds having more leverage and large basis trades, which could have unknown unwinding implications.
          • Accuracy
            • Morgan Stanley’s top strategist Mike Wilson predicted a potential 10% pullback in stocks ahead of the election.
            • Nvidia received a rare downgrade to neutral by New Street Research due to valuation concerns.
          • Deception (30%)
            The author makes several statements that imply a market crash is imminent, but does not provide any concrete evidence or peer-reviewed studies to support this claim. He also quotes Ben Emons and Mike Wilson without disclosing their sources or providing context as to their qualifications. This selective reporting and lack of transparency can be misleading for readers.
            • To me, it feels like an expensive market that doesn’t deserve to trade where it’s trading at.
            • And Nvidia’s stock caught a rare downgrade to neutral by New Street Research on valuation concerns.
            • There's definitely some level of froth [in markets],
            • Valuations on the broader market and popular stocks such as Nvidia (NVDA) just feel too hot, pros are starting to chatter about.
          • Fallacies (85%)
            The author makes several statements that contain appeals to authority and dichotomous depictions. He quotes experts expressing concerns about market valuations and the potential for a market correction, which is an appeal to authority. He also uses language like 'feels too hot' and 'definitely some level of froth,' implying that there is a clear divide between the current state of the market and a desirable or normal state, which is a dichotomous depiction. These fallacies do not necessarily invalidate the author's arguments, but they do weaken their credibility and detract from an objective analysis of the market.
            • There's definitely some level of froth [in markets],
            • Morgan Stanley’s top strategist Mike Wilson warned this week of a 10% pullback in stocks ahead of the election.
            • And Nvidia’s stock caught a rare downgrade to neutral by New Street Research on valuation concerns.
          • Bias (95%)
            The author expresses concern about the current state of the stock market and specifically mentions high valuations and froth. He also quotes experts who share similar concerns. However, he does not explicitly demonstrate bias towards any particular political, religious, ideological or monetary position.
            • ]There's definitely some level of froth [in markets],[
            • Site Conflicts Of Interest (100%)
              None Found At Time Of Publication
            • Author Conflicts Of Interest (100%)
              None Found At Time Of Publication

            77%

            The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
            (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

            A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

            A 'deeper' S&P 500 pullback is coming, Piper Sandler warns

            Investing.com Financial Markets Platform Sam Boughedda Tuesday, 09 July 2024 17:51
            • Unique Points
              • Piper Sandler argues that the undermines the sustainability of the current upswing.
              • Despite maintaining its year-end target, Piper Sandler expects a deeper pullback/correction in the coming months towards the S&P 500’s long-term uptrend.
            • Accuracy
              • Piper Sandler argues that the current upswing in the S&P 500 is unsustainable.
              • Fewer stocks are participating in the rally and investors are focusing on a limited group of high-performing companies.
            • Deception (30%)
              The author expresses conflicting opinions within the same article, stating that Piper Sandler believes in a potential correction while also maintaining a bullish outlook until unemployment reaches 4.5%. This selective reporting of information supports only the author's position and creates confusion for readers.
              • Despite recent highs, Piper Sandler analysts are cautioning investors about a potential correction in the S&P 500.
              • Despite maintaining its year-end target, Piper Sandler expects a deeper pullback/correction in the coming months.
              • They argue that this undermines the sustainability of the current upswing.
            • Fallacies (85%)
              The author commits an inconsistency fallacy by presenting two contradictory statements from the same source within the same article. In one part of the article, Piper Sandler warns of a potential correction in the market and mentions deteriorating market breadth and narrowing leadership as concerns. However, in another part of the article, they maintain their bullish stance until unemployment reaches 4.5% and express constructive views. This inconsistency weakens their argument.
              • ][The firm] argues that this undermines the sustainability of the current upswing.[/
              • ][They] remain constructive.[
            • Bias (95%)
              The author expresses a cautionary tone towards the stock market and predicts a potential correction based on weakening market breadth and narrowing leadership. However, in the same article, the author also mentions that Piper Sandler's analysts believe Wall Street will remain bullish until unemployment reaches 4.5% and they remain constructive. This creates a conflicting message that could be seen as an attempt to manipulate readers' emotions or create fear around the market, which is a form of ideological bias.
              • ]The current market dynamics suggest a correction is likely,
              • Site Conflicts Of Interest (100%)
                None Found At Time Of Publication
              • Author Conflicts Of Interest (100%)
                None Found At Time Of Publication

              95%

              The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
              (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

              A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

              S&P 500, Nasdaq close at all-time highs ahead of inflation data and second-quarter earnings reports

              NBC News Digital Tuesday, 09 July 2024 17:52
              • Unique Points
                • S&P 500 and Nasdaq closed at record highs on Monday
                • June consumer price index to be released Thursday, producer price index on Friday
                • U.S. economy added more jobs than anticipated but unemployment rate rose to 4.1% last week
              • Accuracy
                • Financial sector profits are expected to contribute only around 18% of the S&P 500’s earnings tally.
                • Nvidia's soaring first-half gain contributed around a third to the S&P 500’s advance.
              • Deception (100%)
                None Found At Time Of Publication
              • Fallacies (100%)
                None Found At Time Of Publication
              • Bias (100%)
                None Found At Time Of Publication
              • Site Conflicts Of Interest (100%)
                None Found At Time Of Publication
              • Author Conflicts Of Interest (0%)
                None Found At Time Of Publication