Top 5 things to watch in markets in the week ahead
Investing.com — U.S. inflation data will be the main focus this week as investors await further clarity on the future path of Federal Reserve interest rates. Big U.S. banks kick off earnings session, crypto looks set to remain volatile and the U.K. is to release GDP data. Here’s what you need to know to start your week.
The U.S. is to publish the latest consumer price index figures on Thursday, followed a day later by the report on producer prices, with investors watching closely for clues on the possible trajectory of interest rates.
A gradual cooldown in inflation has fueled bets that the Fed could begin to cut interest rates as soon as March.
Hopes for a swift pace of easing had triggered a blistering rally in the final weeks of 2023, which took the S&P 500 to within 1% of its all-time high. But investors have turned cautious since the start of 2024, as they awaited further clarity on when rate cuts will begin, and how quickly they will happen.
Friday’s employment report for December dampened hopes for rapid rate cuts, with the U.S. economy adding more jobs than expected, but a separate report showing service sector activity slowing last month encouraged expectations for swift easing.
Investors will also get to hear from several Fed officials during the week, including New York Fed President John Williams and Atlanta Fed head Raphael Bostic.
Major U.S. banks kick off earnings season with JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC) and Citigroup (NYSE:C) due to report fourth quarter and full-year results on Friday.
Top lenders brought in more income from interest payments in 2023 as the Fed raised rates, helping banks to offset a protracted slump in dealmaking revenue in Wall Street divisions.
Consumers are
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