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Fed Keeps Interest Rates Steady
Happy Sunday Investors. We had another jam packed week, lets dive into it below.
MARKET RECAP
Markets Continue to Reach All Time Highs as Fed Holds Interest Rates Steady
SPY Daily Chart
The market had another busy week led by Apple earnings, Amazon earnings, Fed meeting and April jobs report. The S&P 500 saw lots of volatility but ultimately rose on the week after a strong Friday session.
The week began with a remarkable 15% jump by Tesla after Elon Musk made a surprise visit to China and the car company was able to pass the country’s data security requirements. The stock fell back down 10% from its Monday highs but remains above the 50 ma showing some technical strength. It will be interesting to see where it goes from here and if the company can get some momentum from this recent excitement or if it starts to sell off again.
After a sharp downward turn on Tuesday, Amazon posted strong quarterly results, rising as much as 8% in after hours trading before closing Wednesday up 2.3%. The Fed decided to hold interest rates steady once again Wednesday afternoon. This is not roughly 10 months with the same rate as the Fed has yet to see the inflation reaction they were hoping for. Stocks popped shortly after Jerome Powell’s press conference before reversing down before close and finishing the day in the red.
Apple reported earnings after the bell Thursday and announced a 110 billion dollar buyback which sent the stock shooting upwards about 6% on Friday.
The week finished with an underwhelming jobs report, but stocks rose over 1% to close the week in the green. SPY closed just a few cents below the 50 ma, signaling a potential technical breakthrough after the last few weeks since the charts broke down. This week will be pivotal in determining whether the market can finally get out of this rut or not.
TRENDWATCH
Taiwan Semiconductor Manufacturing eyes key moving average crosses
TSM, who play a pivotal role in the development of microchips in the AI race, broke down technically a few weeks ago. The 8 ema sits right on top of the 21 ema and both look to be days away from crossing the 50 ma. I will be keeping my eye to see if TSM can break through the 50 ma.
Last Weeks Trend: Amazon
Last week I pointed out AMZN as my trend watch to see how it would respond to earnings while hovering near 3 critical moving averages. AMZN posted strong quarterly results which saw a boost in stock price and the 8 ema, 21 ema, and 50 ma are now sloping upwards.
In the News
💻 Apple’s $110 Billion buyback was the largest in history. Helping lift the stock despite poor earnings.
💼 The US adds 175,000 new jobs in April, much less than the 240,000 that was expected. Unemployment rises to 3.9%.
💵 Fed holds interest rates steady.
UPCOMING WEEK
The market has a relatively quiet week after back-to-back busy weeks. The most notable earnings this week is Disney on Tuesday, then Toyota and Uber report on Wednesday.