US economic data could be highly bullish this week, says Citi's Stuart Kaiser
Fed rate cuts, and the past jobs data. However, Kaiser can now give a sigh of relief, as the market seems to be taking the course of normalizing and growth, as their is a chance of «hugely bullish» outcome for equities this week.
What is the current situation of the US economy?
The US economy is quite fragile at this point now, but things are becoming increasingly positive in this current week, looking at market forces like jobs data and inflation slowly returning back on track now. With the latest Fed rate cut, the recession fears are also a little eased at this point, following a massive 50 bps slash, something that has not happened in years. Meanwhile, there are reports that the stock market could be driven even higher, based on multiple market forces, including Friday's monthly jobs report, according to Kaiser.
Jobs and manufacturing data hold the key
The monthly jobs and manufacturing data hold the key to the current market scenario as of now, since any kind of weakness in these outputs, could easily trigger recession fears, which could be yet again, detrimental for the US economy, just ahead of the US elections 2024.
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Moreover, the upcoming US polls in November is playing the devil's game for the economy and stock markets, as the uncertainty in the poll contest, is making US investors even more anxious at this point.
FAQs:
Is the US economy recovering?
After the US Federal Reserve issued the 50 bps rate slash, and the inflation concerns began reducing, the US economy looks like it is slowly steadying its
