The S&P 500 Index settled Friday at an all-time high, marking its first record close in more than two years.1 After the equity market rally appeared to be broadening out during the final two months of 2023, the Magnificent Seven stocks have reclaimed their leadership position this year. Even among the Magnificent Seven, the breadth is narrowing with Nvidia remaining the star performer — up more than 20% year-to-date.2 Tesla — one of the relative laggards among the Magnificent Seven this year — is set to report earnings this week.3
This week’s economic calendar will provide plenty of data for the data-dependent Federal Reserve (Fed) prior to its meeting next Wednesday. Our first look at fourth-quarter gross domestic product (GDP) and new home sales will be on Thursday. The Fed’s favorite inflation gauge — personal consumption expenditures (PCE) — will be out on Friday.4 Even though the majority of Fed policymakers have argued March is too soon to begin rate cuts, investors are placing the odds as a coin toss.
1CNN Business – S&P 500 closes at record high for first time in two years; 1/19/24
2Investor’s Business Daily – Nvidia (NVDA); 1/22/24
3Yahoo! Finance – What to expect from the Magnificent Seven: Tesla, Microsoft, Alphabet, Apple, Meta, Amazon and Nvidia; 1/18/24
4MarketWatch – U.S. Economic Calendar; as of 1/22/24
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