S&P 500 Eyes New Highs: Industrial, Energy Stocks to Fuel Gains Amid Tech Wobble?
Despite a slightly weaker close on Wednesday, the SPY, tracking the S&P 500, may surge to a new record high today.
Recent spikes in copper, gold, and WTI crude oil prices have spurred a rally in energy stocks and miners, bolstering market sentiment.
Traders await key US economic data today, including PPI and retail sales figures amid expectations of continued bullish momentum in the SPY.
The SPY, which is designed to track the S&P 500 stock market index, could be heading to a new record high today despite a slightly weaker close on Wednesday.
While the tech sector (NYSE:XLK) rally has weakened in recent days, other sectors such as industrials (NYSE:XLI), energy (NYSE:XLE), and financials (NYSE:XLF) have started to outperform.
We have seen a big rise in copper and gold prices of late, while WTI crude oil has surpassed the $80 level. Rising commodity prices have helped to fuel a rally in energy stocks and miners.
Stocks remain buoyant despite the release of slightly hotter-than-expected US inflation data earlier this week, which failed to dampen expectations of a rate cut from the Federal Reserve in the coming months.
In short, because there’s optimism about a Chinese demand recovery. We have seen metal prices like copper and silver break out this week, with the former rising above $4.00 and the latter hitting $25 per ounce. WTI crude oil has hit $80 per barrel today.
In so far as copper is concerned, its gains coincided with a report of an agreement being reached among some Chinese smelters to cut production due to a collapse in processing fees, raising fears about a shortage of refined metal.
Chinese smelters, which are the leading global producers and consumers of refined copper, are encountering financial difficulties
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