1. Moving the markets

The S&P 500 took a breather Wednesday, retreating from its recent peak, as Nvidia’s sizzling start to 2024 finally saw a chill. The trading floor was still buzzing from Tuesday’s gains, where the S&P 500 and Nasdaq jumped over 1% after inflation reports aligned with the crystal ball predictions. Core inflation, minus the munchies and gas, ticked up a notch last month but didn’t dampen the spirits of the ever-optimistic market mavens.

As we inch closer to the Fed’s pow-wow on March 19, traders are on the edge of their seats, anticipating Fed Chair Jerome Powell’s next move. Will he stick to the script of being data-driven and keep a steady hand on the wheel?

In the meantime, it’s been a seesaw session: Small Caps took the lead, while Nasdaq played catch-up… that is until a last-minute sell-off shook things up. The Dow and Small Caps scraped together some modest wins, but Nasdaq and S&P weren’t so lucky, ending up in the red.

The “Magnificent 7” had a less than magnificent day, struggling to shine despite a brief comeback. Meanwhile, the most shorted stocks got a morning boost only to lose steam, mirroring bank stocks that started strong but closed weaker as the Fed’s safety net program (BTFP) wrapped up.

On the bond front, yields were up, but the real headline-grabber was Bitcoin’s ETFs, which saw a record-breaking influx of over $1 billion, catapulting Bitcoin to a dizzying $73,000 high. Not to be outdone, Gold wiped away its losses, and oil prices soared, adding to the market’s rollercoaster ride.

So, as we ponder the parallels between Cisco Systems and Nvidia, one must wonder: are we on the cusp of déjà vu all over again?

1. Moving the markets

On a day when the inflation report played nice and mostly met the expectations for February, the stock market decided to throw a little party of its own. The consumer price index, which is like the economy’s thermometer, rose by 0.4% last month, hitting a 3.2% year-over-year fever. The economists’ crystal balls predicted this well, except they were off by a smidge, expecting a 3.1% annual increase.

Now, let’s talk about core inflation – that’s inflation without the mood swings of food and energy prices. It got a bit spicy, rising 0.4% in February, which is a tad hotter than the forecasted 0.3%. Year-over-year, it’s up by 3.8%, outpacing the 3.7% forecast. But hey, it’s still the coolest it’s been since April two years ago.

Diving deeper into the numbers, we find the ‘Super Core’ – think of it as the core of the core, minus housing costs. It jumped 0.5% month-over-month, reaching a scorching 4.5% year-over-year – the highest since the days of May 2023.

Some Wall Street folks are sweating over these numbers, thinking they might throw a wrench in the Federal Reserve’s plans to start slicing interest rates come June. The road to their 2% inflation target is looking a bit more like a game of “Where’s Waldo?”

In the tech world, stocks were on a caffeine buzz. Nvidia’s shares leaped 3%, Microsoft edged up about 2%, and Oracle? Well, they blasted past 10% after showing Wall Street they’ve got the earnings muscle.

As traders shift their gaze to the upcoming producer price index (PPI) and the Fed’s monetary policy huddle later this month, the financial playground is getting interesting.

Bond yields climbed the jungle gym, the MAG7 stocks bounced back like they’re on a trampoline, the dollar did a hopscotch routine, and gold took a breather after sprinting to record highs.

With a few more economic breadcrumbs left this week, the market could flip faster than a pancake at a breakfast buffet.

So, the question remains – will the market end the week flexing for the bulls or playing dead for the bears?

1. Moving the markets

In the unpredictable world of Wall Street, stocks took a morning dive but didn’t forget their floaties, bobbing back up by closing time as the recent record-breaking rally decided to take a breather. Meanwhile, traders played a game of ‘hot potato’ with their portfolios, not wanting to get burned before tomorrow’s sizzling Consumer Price Index (CPI) data reveal.

Tech titan Super Micro Computer felt a chill, dropping 7%, while Nvidia played ‘Red Light, Green Light’ with its stock price in a market that’s more jittery than a caffeinated squirrel. The big question on investors’ minds: Can AI stocks keep climbing, or have they reached their silicon peak?

As the CPI looms like a pop quiz on Tuesday, the Dow Jones’ pencil pushers predict a 0.4% month-over-month increase and a 3.1% year-over-year hike. When you strip away the unpredictable food and energy sectors, the core CPI is expected to tick up 0.3% for the month and 3.7% annually.

This financial foreplay sets the stage for the Producer Price Index (PPI) and Retail Sales data later in the week, all leading up to the Federal Reserve’s March policy meeting. Will the Fed play rate-cut fairy godmother in 2024, or will February’s inflation data be the cold shower that sobers up their rate reduction dreams?

As the market holds its breath for the “most important data item in the whole wide world ever,” stocks tiptoed on thin ice, bond yields climbed the ladder, and the dollar and gold decided to play dead.

But crypto? It’s off to the races, with Bitcoin galloping to almost $73,000, leaving Nvidia in the dust, nursing an 8% tumble over two days and a 14% slide from its peak.

So, as we stand on the eve of the CPI showdown, one must wonder: Will tomorrow’s figures give the bulls a red cape to charge at, or will the bears get their honey pot?