STNE - Nasdaq S&P 500 Set For Strong Open As Nvidia AI Conference Buzz Eclipses Fed Jitters: Analyst Tells Why Investors Should Shrug Off March Slackness | Benzinga

Traders seem poised to overlook their inflation concerns as they anticipate the Federal Open Market Committee meeting scheduled for the week with optimism. Early Monday, stock futures showed mostly upward movement, with the tech sector potentially leading the way. Nvidia Corp.’s (NASDAQ:NVDA) GTC 2024, featuring CEO Jensen Huang‘s keynote, and the possibility of a partnership between Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) and Apple, Inc. (NASDAQ:AAPL), are expected to boost sentiment.

However, bond yields are on the rise, reflecting lingering concerns about a hawkish message from the upcoming Federal Reserve meeting.

Cues From Last Week’s Trading:

Higher-than-expected consumer and producer price inflation data led to the major indices posting their second consecutive weekly losses. Small-cap and tech stocks were particularly affected, with all three major indices closing lower in the week ending March 15. The broader S&P 500 Index reached intra-day and closing highs on Tuesday before retracing following the release of the inflation data.

The week also witnessed a spike in bond yields due to tempered expectations of rate cuts, accompanied by a sharp increase in the CBOE Volatility Index (VIX).

Fund manager Louis Navellier commented on the week’s developments, stating, “The strong rally in equities since the end of October is finally showing some fatigue.” He noted that gains have slowed as expectations for Fed rate cuts are being pushed back, with June now the expected timeframe for the first rate cut, reflecting a 60% probability.

Analyst Color:

Weighing in on the market weakness, Carson Group’s Ryan Detrick highlighted historical data that should ...

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