Wall Street Ahead: Investors hoping high stakes despite shaky start; consumer data, earnings to watch out next week
Market ahead: Q3 results, Red Sea crisis, inflation, FII activity among key market triggers to watch next week The majority of investors continue to hold an optimistic outlook, encompassing positive sentiments toward the U.S. economy, corporate profits, and the Federal Reserve's course of monetary policy.
The prevailing narrative of robust growth and a gradual easing of inflation, which contributed to the S&P 500's impressive 24% gain last year, has now become the widely accepted perspective among investors. According to the most recent survey from BofA Global Research, published last month, 66% of fund managers expressed confidence in the economy experiencing a soft landing in 2024.
BofA's data revealed that only 15% of fund managers anticipated a recession in the coming 12 months, marking a significant shift from the previous year when 68% of investors foresaw an impending recession. Also read: FPIs continue investing spree, infuse ₹4,773 crore in first week of January; Details here Investor optimism faces a crucial test in the upcoming release of consumer price data next week, determining whether recent confidence in diminishing inflation might have been premature.
The outlook for a slowing economy, potentially paving the way for Federal Reserve rate cuts, suffered a setback on Friday. This was prompted by job data revealing that employers not only hired more workers than anticipated in December but also increased wages at a robust pace.
The S&P 500 experienced a notable decline of 1.54% this week, marking the most significant weekly drop since late October. Also read: Expert view: Here are key risks market will have to address in 2024 Major banks including JPMorgan Chase and Citigroup are set to launch the upcoming
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