Good morning, traders!
The S&P 500 ($SPY) is trading near Friday’s close. Let’s get into it…
This week is set to be a significant one on Wall Street, marked by a series of major economic events and data releases. U.S. equity futures indicated a slight decline, while Treasury yields and the dollar showed modest gains. The focus is on a range of macroeconomic data, central bank rate decisions, and Treasury bond auctions. These events are particularly noteworthy as investors reassess their expectations of interest rate cuts from the Federal Reserve following a robust November jobs report.
The Federal Reserve’s policy decision, expected on Wednesday, will likely maintain interest rates at their current high levels between 5.25% and 5.5%. However, an inflation report due on Tuesday could influence the Fed’s future approach. These developments come amid signs of a resilient job market and a growing economy, which suggest a potential ‘soft landing’ in 2024, where inflation eases without leading to a recession. This scenario is supporting stock market optimism as the year ends.
Brad McMillan, Chief Investment Officer for Commonwealth Financial Network, reflects positive sentiments about the U.S. economy’s trajectory. He notes that with interest rates stabilizing and the job market strengthening, people are in a good position to spend, especially as the holiday season approaches. This consumer confidence is reflected in the performance of major stock indices like the S&P 500 and the Dow Jones Industrial Average, which have shown strong growth recently.
Globally, European stocks have shown slight gains, while Asian markets reacted to China’s latest inflation data, sparking expectations for more economic support from Beijing. As the week begins, U.S. stock futures indicate a steady start, with the Nasdaq showing a slight decrease. Investors are closely watching the upcoming Consumer Price Index data and the Federal Reserve’s interest rate decision, both of which are crucial indicators for the stock market’s direction heading into 2024.
Monday Economic Events:
3-Yr Note Auction 11:30am ET
10-Yr Note Auction 1:00pm ET – High Volatility Expected
Fed Speaker Scheduled:
No Fed Speakers Scheduled
This article provided by the DailyBubble team should only be considered as informational and/or entertainment by the reader. DailyBubble makes no representation to buy or sell any security or financial instrument within the article. Readers seeking investment advice should seek independent financial advice from a professional, and independently research and verify. The DailyBubble team wrote this article and may express its own opinions therein.