Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

S&P 500 Momentum Report

Higher US Treasury yields on the back of hotter-than-expected US inflation failed to erode the optimism in Wall Street last week

US Source: Bloomberg

Holiday-shortened week in the US saw some caution creeping in

Higher US Treasury yields on the back of hotter-than-expected US inflation failed to erode the optimism in Wall Street last week, as the S&P 500 reversed initial post-consumer price index (CPI) losses to hang around its recent record high. But as we tread in the seasonally weaker period of the year, with Nvidia’s earnings providing the last for megacap tech results this week, markets may be faced with the challenge of having to seek out fresh catalysts to continue with its risk rally ahead.

What to watch: US FOMC minutes, Nvidia’s earnings

The week ahead will leave the US Federal Open Market Committee (FOMC) minutes on watch. Amid the recent US inflation scare, market participants have pared their rate cut expectations to price for four 25 basis point (bp) reduction by the end of 2024, versus the initial six cuts at the start of the year. The minutes may be slightly outdated, given that the recent inflation data is released after the previous FOMC meeting. But nevertheless, eyes will be on any clues from policymakers surrounding rate outlook and economic risks ahead.

The key market risk event this week may be Nvidia’s earnings. Being the poster child for the artificial intelligence (AI) boom, its share price is up another 50% year-to-date, with expectations seemingly priced for perfection and leaving little room for error with its upcoming results. Refinitiv estimates are looking for 4Q revenue to jump 241% from a year ago to US$20.6 billion, while earnings per share may jump 427% year-on-year to US$4.64.

S&P 500 technical analysis: Indecision kicks in around key psychological 5,000 level

The S&P 500 continues to flirt with its key psychological 5,000 level into the holiday-shortened week, with its recent ranging moves pointing to some near-term indecision for now. A minor ascending channel pattern has been in place since the start of the year, with one to watch for any break below the lower trendline support, along with its post-CPI low on 14 February, to signal sellers taking greater control. That may then potentially pave the way for a wider retracement in the index towards the 4,800 level next. On the broader scale however, the trend remains upward bias, with its daily relative strength index (RSI) trading above the key 50 level since November 2023.

US 500 Cash

Source: IG charts

Sector performance

Market participants found some unease from hotter-than-expected US January inflation, which led to profit-taking activities in rate-sensitive growth sectors last week. The consumer discretionary, communication services and technology sectors registered losses, dragged lower by mixed performance among the “Magnificent Seven” stocks. Notably, Alphabet was down 5.6% for the week, Apple and Microsoft were down more than 3%, while Amazon was 2.8% lower. Nvidia managed to eke out a slight gain of 0.7% last week as a show of resilience, but its upcoming earnings releases will determine if its 51% return year-to-date is overly priced for perfection. The materials sector (+2.4%) outperformed for the second straight week, followed by the energy sector (+2.2%) which found support from a three-week high in oil prices. Financials gained 1.4% as well, overall reflecting some catch-up in place among laggard sectors.

SPX sector returns: One-week and one-month

Source: Refinitiv

SPX sector returns: One-month and year-to-date

Source: Refinitiv

Sector ETFs Summary

Source: Refinitiv
*Note: The data is from 12th – 16th February 2024.

Top 15 winners and losers

Source: Refinitiv
*Note: The data is from 12th – 16th February 2024.

Top stocks by sectors

Source: Refinitiv
*Note: The data is from 12th – 16th February 2024.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on stock opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.