The SPDR S&P 500 ETF (SPY) is experiencing upward momentum on January 15, 2025, driven by a combination of favorable economic data and strong corporate earnings. The release of the Consumer Price Index (CPI) report showed core inflation rising by only 0.2% in December, below the anticipated level, which has eased concerns about persistent inflation and the Federal Reserve's potential rate hikes. This softer-than-expected inflation data has led to a decline in Treasury yields, providing a boost to equities. Additionally, the earnings season kicked off with major banks like JPMorgan Chase, Wells Fargo, and Citigroup reporting better-than-expected results, further lifting investor sentiment.
The positive market sentiment is also supported by the Producer Price Index (PPI) data released earlier, which indicated a weaker-than-expected increase, suggesting a disinflationary trend. This has been interpreted as a sign of sustained economic growth, presenting a buying opportunity for investors. The anticipation of the Federal Reserve potentially cutting interest rates later in the year has also contributed to the bullish outlook. Furthermore, the market is buoyed by the expectation of a 7.5% increase in quarterly earnings for S&P 500 companies in Q4, as reported by Bloomberg Intelligence.
The SPDR S&P 500 ETF (SPY) rose to $592.02, marking a 1.69% increase as of 10:00 AM ET on January 15, 2025.