Stock Market Week Ahead: Core PCE, GDP to Test Fed's Rate Cut Projection

investing.com:

It was a pivotal week for Central Banks around the world, with several important rates decisions shaking the investing landscape for the year ahead.

In what was considered a historic decision, the Bank of Japan hiked interest rates for the first time in 17 years, putting an end to the longest negative rates policy in history. However, as the market expected more hawkishness from the BOJ, the Japanese Yen tanked afterward the decision, reaching the key 150 level.

Conversely, the SNB cut rates in a surprise move on Thursday, making Switzerland the first developed nation to pivot in the current cycle.

In the US, the stock market surged to new highs following the Fed's indication that it will maintain its projection for three interest rate reductions this year, despite stubborn inflation readings.

Investors are now giving an 80% chance to all three major central banks – the Fed, the ECB, and the BoE – to implement their first 25bps cut by June.

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Now let's have a look at what investors should focus on for the week ahead.

Attention is now turning to next week, particularly the Initial Jobless Claims report due on Wednesday. In an unexpected turn, the previous week saw a decrease in the number of Americans filing for unemployment benefits.

According to the Labor Department, claims for state unemployment benefits fell by 2,000 to a seasonally adjusted 210,000 for the week ending March 16, against