Good evening. The S&P 500 ended the week down -1.0%. Here are the top stocks to watch this week, and what’s moving the markets.

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Top Stocks & Setups To Watch This Week

• $NVDA
Break below 116.70 🎯 113.37 & 106.48
• $ROKU
Break below 81.80 🎯 77.65 & 75.89
• $NKE
Break below 76.58 🎯 75.07 & 73
• $AFRM
Break above 62.88 🎯 65.74 & 69.35
• $TSLA
Break above 414.50 🎯 433.20 & 450
• $PLTR
Break above 85.22 🎯 90 & 94

KV’s S&P 500 Levels

Weekly Market Recap

Economic Momentum Sustains

The U.S. economy continues to show resilience, growing at 2.3% in the fourth quarter with consumer spending driving expansion. A strong labor market, with wage gains outpacing inflation, supports this momentum, though manufacturing may stabilize after a prolonged contraction. While discretionary spending may slow, we expect growth to accelerate later this year, driven by Fed rate cuts and pro-growth policies, helping maintain economic stability without a recession.

Earnings Growth Diversifies

Corporate earnings season is off to a promising start, with tech giants like Apple, Microsoft, and Meta reporting strong results despite increased competition from emerging AI firms like DeepSeek. S&P 500 earnings are on track for a 12% rise, the strongest since 2021. Broader sector gains, particularly in financials and industrials, suggest a rotation away from tech dominance. With projected earnings growth of over 14% for 2025, market leadership is diversifying, supporting further bull-market expansion.

Fed Holds Steady

The Fed held rates steady at 4.25%-4.5% amid solid economic conditions and slowing disinflation. Core PCE inflation has moderated but remains above the 2% target. As housing costs ease and inflation trends lower, the Fed may gradually reduce rates, likely settling between 3.5% and 4% this year. Continued balance sheet reduction and lower yields should support borrowing and economic growth. This environment underscores the importance of portfolio diversification, with opportunities across sectors and value-focused investments.

Coming Up…

Important economic releases this week include the ISM Manufacturing PMI and nonfarm payrolls report for January. On the earnings front, PLTR, AMD, AMZN, GOOGL, PYPL, UBER, F, SNAP, QCOM, SPOT, DIS, LLY, PFE, ENPH, and RBLX are expected to report this week.

Key Headlines We’ve Been Reading

This is what’s caught our eye over the past 7 days.

• Tariffs threatened by Trump could nudge prices in wrong direction as U.S. inflation lingers.
• OpenAI in talks for new funding at up to $300 billion value.
• Norway $1.8 trillion fund returns 13% on tech stocks gains.
• Musk-Trump bromance turns X debt from burden to asset for Morgan Stanley.
• Trader mints millions in hours on bond options bet tied to Fed.

Trading Quote Of The Week

That was it for this week!

Stay safe,
KV 👋

Week #5 | February 2, 2025

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