Good morning traders!
The S&P 500 ($SPY) is trading near yesterday’s close. Let’s get into it…
Stock futures rise slightly on Thursday, with investors keeping an eye on new jobs and economic growth data. This comes after central bank leaders reiterated that interest rates need to stay high to control inflation, despite some signs of price increases slowing down. Central bankers from the U.S., Europe, and Japan, who met yesterday, stated that they need to continue applying upward pressure on prices due to robust hiring. Federal Reserve Chair Jerome Powell emphasized that the policy hasn’t been restrictive enough for a sufficient duration.
Later today, the government will release its final estimate of the U.S. GDP for the first quarter and data on weekly jobless claims. Despite previous economic growth estimates being a modest 1.3%, the American labor market remains strong amidst consistent Fed rate hikes. Hiring continues to be strong with numerous job openings, despite a recent uptick in layoffs.
On Friday, the monthly consumer spending report, a key inflation indicator for the Fed, will be issued. While some economists predict a brief recession following interest rate hikes by global central banks, others believe a “soft-landing” scenario, where growth slows but spending prevents a full-blown recession, is still achievable. European and Asian markets have mixed performances, while energy markets see a slight increase in U.S. crude prices.
Thursday Economic Events:
GDP 8:30am ET – High Volatility Expected
Jobless Claims 8:30am ET – High Volatility Expected
Corporate Profits 8:30am ET
Pending Home Sales 10:00am ET – High Volatility Expected
EIA Natural Gas Report 10:30am ET
Fed Speaker Scheduled:
Jerome Powell 2:30am ET – High Volatility Expected
Raphael Bostic 3:20pm ET
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