QQQ - Soft Landing On Track With New All-Time Highs Ahead

2024-04-29 12:30:26 ET

Summary

• The S&P 500 ends a three-week losing streak as earnings reports from technology companies boost investor enthusiasm.
• Concerns about inflation and restrictive monetary policy are unwarranted, setting the stage for the next leg up in the bull market.
• The disinflationary trend continues, with real-time data indicating a softening in demand for services and lower pricing pressures.
• The next leg up in this bull market should see a change in sector leadership.

All eleven sectors of the S&P 500 (SP500) finished higher last week to end a three-week losing streak for the index that was instigated by fears of stalled progress on inflation and a "higher-for-longer" interest rate policy from the Federal Reserve. Reigniting investor enthusiasm were earnings reports from some of our largest technology companies that are starting to monetize the explosive growth in artificial intelligence, while corporate profits in aggregate are also exceeding expectations. The earnings season has been an effective counterbalance to fears of sticky inflation and restrictive monetary policy, but I think both are unwarranted concerns. On the contrary, they set the stage for the next leg up in this bull market....

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