Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Bank Fear Selloff Gives Way To Earnings Driven Rally – Was Last Week’s Shakeout A Positive Signal?

by April 29, 2023
April 29, 2023
Bank Fear Selloff Gives Way To Earnings Driven Rally – Was Last Week’s Shakeout A Positive Signal?

The markets began last week with a sharp pullback that pushed the broader Indices toward key support, with many individual stocks breaking below support. The drop occurred amid renewed banking fears after Tuesday, when San Francisco-based First Republic Bank (FRC) reported a slump of more than $100 billion in deposits in the first quarter. 

Technology stocks were hardest hit, with Software and Semiconductor stocks down 3% Tuesday as investors sold shares in the face of FRC’s instability. Heavy selling on negative news such as last week will shake out weaker hands, but it can often pave the way for a sustained rally afterward — if market conditions are ripe, that is.

The major Indices were in fact able to find support, led by gains in mega-cap stocks such as Microsoft (MSFT) and Meta Platforms (META), who reported better than expected earnings. Stocks in other areas also drove the markets higher on Thursday and Friday after posting strong quarterly results, while also guiding growth higher for the year.

DAILY CHART OF S&P 500 INDEX

The broad-based rally later in the week not only pushed the S&P 500 back into an uptrend, but it helped improve breadth enough to inject some fuel into the markets. Next week will provide some major hurdles, however, as we head into Wednesday’s FOMC meeting and Powell’s post-meeting speech.

At this time, traders are anticipating a ¼% hike in the Fed Funds rate while also on the lookout for news that the hike will be its last one. Recent inflation reports, such as today’s core Personal Consumption Expenditure (PCE) data — a closely watched report for the Federal Reserve — showed that inflation is drifting lower, but overall, it remains quite sticky. 

As highlighted in the S&P 500 chart above, 1200 is the next area of resistance and, should we move above this level on volume, the current rally may last longer. In addition to next week’s interest rate decision, Apple (AAPL) is due to report earnings on Thursday after the markets close, as will 800 other companies as we head into one of the busiest weeks of earnings season.

If you’d like to be alerted to any shift in my outlook for the broader markets, use this link here to take a 4-week trial of my twice weekly MEM Edge Report for a nominal fee. We stayed with the high quality stocks on our report’s Suggested Holdings List last week, despite cracks in some of the charts. These stocks are now poised to trade much higher, and you’ll receive immediate access to this list as well as in-depth sector and industry group analysis.

Warmly,

Mary Ellen McGonagle MEM Investment Research

0
FacebookTwitterGoogle +Pinterest
previous post
Now That “Stagflation” Has Gone Mainstream
next post
S&P 500 Regains its Uptrend

You may also like

Sector Spotlight: Unleash The Power of Sector Analysis...

November 8, 2023

Seasonality and Fundamentals Converging on GLD

September 21, 2023

Fight This Bullish Development At Your Own Risk

May 28, 2023

Strongest Top 3 S&P 500 Stocks: Will They...

December 31, 2024

Get Paid to Buy Your Favorite Stocks Using...

April 2, 2025

DP Trading Room: Magnificent Seven Stocks in Bear...

April 1, 2025

Here’s Why Growth Stocks Outperformed Last Week!

December 8, 2023

Building A Portfolio To CRUSH The S&P 500!

November 16, 2022

BEER Stocks: Own What You Know

May 11, 2023

Unveiling Market Trends: What’s Triggering a Midweek Bearish...

March 27, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump wins over lifelong Democrat autoworker with ‘big, beautiful bill’ vehicle loan tax benefit

      June 27, 2025
    • EXCLUSIVE: Trump admin takes action after massive fraud uncovered at agency Dems tried to protect from DOGE

      June 26, 2025
    • FBI investigating Iran strike leaker, Leavitt says: ‘They should be held accountable’

      June 26, 2025
    • SMCI Stock Surges: How to Invest Wisely Now

      June 26, 2025
    • NEW! 5 Significant Additions to Our Professionally-Curated Market Summary Dashboard

      June 26, 2025
    • ‘Presidential incapacity’: Senate Republican seeks paper trail of Biden’s autopen use

      June 26, 2025

    Categories

    • Business (8,316)
    • Investing (2,074)
    • Politics (15,824)
    • Stocks (3,172)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved