Week of 02/26-03/01 S&P 500 And Nasdaq Close February At Record Highs

Stocks finished Friday's trading session higher, bringing the S&P 500 (5,137) and the Nasdaq Composite (16,274) to close at fresh record highs. On the other hand, the DOW Jones Industrial Average (39,087) lagged from all-time highs even though it also closed higher for the week. Major catalyst for the recent bull run continuation were major positive corporate earnings earlier in the week and a promising outlook from the latest Personal Consumption Expenditures (PCE) price index report meeting analyst's expectations. The next FED FOMC meeting is scheduled for March 20-21 and investors are eager to know what actions will be taken in regards to interest rates. It is clear that inflation has persisted (advancing at a slower pace), but the main question is if the FED feels comfortable with cutting interest rates this early in the year. The market is likely to continue to rise or maintain its current levels if interest rates remain untouched or we experience the first rate cut in 2024. If interest rates are raised again, we might experience a downtrend of the overall market.

Apple cancelled its project for the apple car earlier this week, which brought positive momentum to the stock as investors saw relief in the risk this project posed. Nvidia stock continued to rise, giving the company a valuation of over 2 trillion dollars. Bitcoin cryptocurrency made the news this week as it reached record highs for the year, surpassing $60,000 per Bitcoin. The cryptocurrency is set to experience a halving event in March in which rewards for mining Bitcoin transactions is cut in half. The halving event and increased investor interest in Bitcoin ETFs are driving buying momentum this first half of 2024. Personal Consumption Expenditures (PCE) price index

The Personal Consumption Expenditures (PCE) price index is a measure of inflation that is widely used by policymakers, economists, and investors. It tracks changes in the prices of goods and services consumed by individuals and is considered a more comprehensive measure than other price indices, such as the Consumer Price Index (CPI). The PCE price index takes into account both durable and nondurable goods, as well as services, and provides a more accurate reflection of consumer spending patterns. It is used by policymakers, particularly the Federal Reserve, to gauge and monitor inflation trends in the economy. The PCE price index is also utilized by economists and investors to analyze purchasing power, assess the impact of price changes on consumer behavior, and make informed decisions regarding investments and monetary policy.