What’s in Store for the S&P 500 Index This Week?
S&P 500 Index breaks its winning streak
For the week ending November 10, the S&P 500 Index (SPY) closed at 2,582, depreciating 0.21% for the week. The S&P 500 Index broke its eight-week winning streak as investors were disappointed with the developments surrounding tax reforms. Last week, the US Senate released its own version of the tax reform bill, which indicated a delay of one year to roll out corporate tax cuts.
Financials (XLF) were at the bottom of the list in terms of performance last week as markets reacted to tax reform developments. The real estate (VNQ), consumer staples, and energy (XLE) sectors were the best-performing sectors for the week ending November 10.
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Speculators decreased bullish bets last week
For the week ending November 10, large speculators of the S&P 500 (IVV) Index decreased net bullish positions to 27,707 contracts from 32,018 contracts, according to the Commodity Futures Trading Commission’s weekly Commitment of Traders report. Uncertainty about US tax reform led to a decline in positive sentiment.
Outlook for the S&P 500 Index
This week, US October retail sales and inflation data will be released. Plus, industrial production data is scheduled to be reported on Thursday. Any new developments in the tax reform space are likely to impact market sentiment. Walmart reports its quarterly earnings this week, and strong results could balance the negative impact of tax reform uncertainty.
In the next part of this series, we’ll understand how negative macro developments could affect the US dollar.