No recession in the US (for now)

Wall Street went up yesterday

Thursday has been a positive day for the US stock market.

All three major US indexes reported profits.

The S&P 500 finished at |+1.96%, the Nasdaq ended the trading session at +2.43% and the Dow Jones closed at +1.57%.

The positive movement has been driven by the strong earnings reports of the big tech companies, including Microsoft, Apple, Amazon and Alphabet.

After the earnings reports, Meta stocks gained 14% yesterday and were the best performer.

The investors’ sentiment is Greed, as indicated in the graph below:

Sentiment indicator – Fear & Greed Index

The market sentiment is 59, in “Greed” mode, but it is less than the data registered one week ago.

No recession in the US (for now).

The US Commerce Department on Thursday published the latest gross domestic product which grew at a 1.1% annual rate in Q1.

The data released yesterday is lower than expected and lower than the previous reading, which was 2.6% in Q4.

Even though there is an evident economic slowdown in the US, the report is still solid and the recession that many investors were expecting in the first months of 2023 has not happened and most probably it will not happen this year at all.

The fact that the GDP is slowing down is not a surprise because the Federal Reserve is implementing a restrictive monetary policy to cool inflation with the attention of not causing a recession.

What to watch today

The Core Personal Consumption Expenditure (PCE) Price Index will be published today at 13:30 GMT.

Core PCI is forecasted to be 0.3% month over month and 4.5%  year over year.

This is the most important inflation index for the Fed that is working to bring down the actual 4,6% of inflation to its target of 2%.

The next Fed gathering will be on 3 May, and most of the investors (87.4%) are betting on a rate increase of 0,25%.

The stock market could be volatile.

Portfolio update

I remain neutral and cautious about the stock market since the trend is not clearly defined.

I hold long and short stock positions and aim to profit regardless of the market direction.

If you are already copying my portfolio, please keep the copy open.

If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).

Remember to copy the open trades to optimize the copy.

Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.

Thank you, everyone. Have a nice day!

Steps to follow to copy my portfolio automatically:

1. Create an eToro account here: https://federicamontella.com/go/etoro/

2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)

3. Go to my profile page: https://federicamontella.com/go/etoro-passionforprofit/

4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)

5. Enjoy, it’s all automatic. You will make passive income 24/7

Let me know if you have any questions.

 

Federica Montella

eToro Popular Investor

 

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Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.