Federal Reserve speakers, GDP data, and a handful of earnings reports are among the key events to monitor in the week ahead.
Last week, the Federal Reserve kept rates steady at 5.50%, in line with expectations. However, the focus shifted to the press conference afterward, where it was revealed that the Fed narrowly agreed to maintain three rate cuts for the year. Fed Chair Powell’s remarks helped calm any potential fears, leading to a rally in the S&P 500 to a new all-time high over the following days.
On the earnings front, most companies reported positive results last week, except for Lululemon, which tumbled after hours and ended the week down over 13%.
This week, attention will turn to a mix of news releases, additional Fed speakers, and a few remaining earnings reports.
Here are five things to watch:
Earnings
Gamestop will report Tuesday night after the market closes, which could cause volatility given its history with meme stock mania. Walgreen Boots Alliance reports Thursday before the open, although neither is expected to significantly impact the overall market.
New Home Sales
Monday at 10 am, new home sales data will be released, providing insights into the real estate market. Recent reports have shown downward revisions, suggesting a potential slowdown in new home sales, possibly due to higher rates or buyer hesitancy. Better-than-expected data could boost the market, especially after the Fed’s cautious stance last week.
Fed Speakers
Several Fed speakers are scheduled throughout the week, with Governor Waller and Fed Chair Powell’s speeches likely to have the most impact. Waller speaks in New York on Wednesday evening, while Powell addresses macroeconomic policy on Friday morning.
GDP
Thursday morning, US GDP data will be released, which could heavily influence market direction. Strong GDP figures may signal a resilient economy, potentially conflicting with the Fed’s dovish stance. Conversely, weaker-than-expected GDP could support the case for rate cuts, potentially sparking a market rally.
Core PCE
On Friday, core PCE data, a key inflation measure, will be released. This data directly impacts the Fed’s inflation outlook. Higher-than-expected inflation could delay rate cuts, leading to market declines. Conversely, meeting or below-expectation inflation could fuel hopes of future rate cuts, potentially boosting the market.
Overall, this week’s events could provide insights into the Fed’s future policy decisions and the health of the economy, shaping market sentiment and direction.
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