Top 5 things to watch in markets in the week ahead
Investing.com — Markets are entering the closing weeks of 2023 after Federal Reserve Chair Jerome Powell said the historic tightening of monetary policy is likely over and discussion of rate cuts is coming «into view». Investors will get a final update on U.S. inflation for this year, while the Bank of Japan may be inching toward a long-awaited policy pivot. Here’s what you need to know to start your week.
Investors will get their last update on inflation for this year with Friday's release of the personal consumption expenditures report, the Fed’s primary inflation gauge.
Economists are expecting the PCE price index to remain flat for a second month in November, while the core measure that strips out volatile food and energy costs is seen rising 0.2%.
There will also be data on consumer confidence, initial jobless claims and durable goods orders, while updates on the housing sector include reports on both new and existing home sales.
Atlanta Fed President Raphael Bostic is due to speak on Tuesday.
The Dow Jones industrial average notched another record high close on Friday, and the S&P 500 ended little changed, but registered a seventh straight week of gains in its longest weekly winning streak since 2017.
Some optimism among investors dampened after Fed Bank of New York President John Williams said on Friday it was too soon to be talking about rate cuts.
«What I think we got this week is that (Fed Chair Jerome Powell) doesn't want to overly punish the economy with (rates) being higher for longer for no good reason,» Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh told Reuters.
«I don't know if we're going to get whatever is considered a Santa Claus rally, but it looks like all things being
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