SPY - Wall Street Turns Cautious After Record Close While Bitcoin Sizzles: Analyst Says Blast-Off From October Lows Points To Early Stages Of Bull Market | Benzinga

Despite the Nasdaq and S&P 500 closing at record highs last week, Wall Street sentiment has shifted towards caution as U.S. stock indices largely pointed to a weak open on Monday. While most analysts predict a sustained bull run, traders are likely to be more cautious before making their next moves.

This week, traders might focus on Fed speeches and labor market data, as the Federal Reserve enters a quiet period before its March 19-20 FOMC meeting. The flow of earnings reports continues to slow down.

The recent buoyancy in the cryptocurrency market suggests a risk-on mood, which could potentially influence the stock market.

Cues From Last Week’s Trading:

U.S. stocks ended the week mostly higher on March 1, with small-caps leading the gains. The market fluctuated throughout the week, reacting to various economic data releases. Thursday’s inflation data, a key metric for the Fed, came in line with expectations, prompting traders to buy stocks.

“While it may appear imprudent for the markets to be so fearlessly optimistic, it’s very much a function of the market construction, where the concentration of the leaders is at decades high and thanks largely to the AI momentum, their prospects for further growth continue to improve,” said fund manager Louis Navellier.

“Perhaps the best news of the week is that the Russell is leading. A widening of the breadth should lead to sustained gains ahead.”

Index Performance In Week Ended March 1

Notwithstanding the overbought levels, an analyst is optimistic about the ...

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