Last week saw markets navigate the triple witching expiration amid continued focus on trade tensions and the Federal Reserve's latest policy projections. The S&P 500 ($SPX) (SPY) showed resilience despite lingering concerns about tariff impacts, with investors digesting NVIDIA's latest product announcements and reassessing rate cut expectations.
Here are 5 things to watch this week in the Market.
Economic Growth Indicators
Thursday's final reading of Q4 GDP at 8:30 am will provide a comprehensive backward look at economic growth. While this is the third revision of Q4 numbers and typically doesn't generate major market moves, any significant adjustments could influence perspectives on economic momentum. This report takes on additional importance as traders try to reconcile recent mixed economic signals with evolving Fed policy expectations. The data could offer context for assessing whether the economy maintains its resilience or shows signs of slowing as we progress through 2025.
Manufacturing and Services Health
Monday brings the S&P Global Manufacturing and Services PMI flash readings at 9:45 am. These preliminary March indicators will provide timely insights into business activity across major economic sectors. The manufacturing index has shown signs of contraction in recent months, and any improvement could boost sentiment around industrial stocks. Meanwhile, the services reading will help gauge whether the largest segment of the economy maintains its growth trajectory. Given recent concerns about uneven economic performance, these diffusion indices could significantly impact market sentiment and sector rotation strategies.
Consumer Sentiment and Spending
Tuesday's Conference Board Consumer Confidence report at 10 am will offer perspectives on household sentiment and spending intentions. Following recent retail sales data and mixed signals from retailers, this reading takes on additional importance for assessing consumer resilience. The report's details on purchasing plans for homes, automobiles, and major appliances could provide valuable forward-looking insights for consumer discretionary sectors. Any significant deviation from expectations might impact retail stocks and influence broader market sentiment about economic health.
Housing Market Momentum
Tuesday's New Home Sales report at 10 am will help assess whether the housing market is maintaining momentum despite persistently high mortgage rates. New home sales data focuses on contract signings rather than closings, making it a more current indicator of buyer demand than existing home sales. Given housing's important role in the broader economy and recent mixed signals from homebuilders, this report could influence expectations about economic growth and consumer confidence. Homebuilders and housing-related retail stocks might see notable reactions based on these results.
Durable Goods Orders
Wednesday's Durable Goods Orders report at 8:30 am will provide insights into business investment trends and manufacturing sector health. The market typically focuses on the non-defense capital goods orders excluding aircraft component as a proxy for business investment. After recent concerns about capital spending restraint, this report could signal whether businesses are becoming more confident about future economic conditions. Transportation equipment orders will also be watched closely for insights into the aerospace and automotive sectors, potentially impacting stocks like Boeing (BA) and Ford (F).
Best of luck this week and don't forget to check out my daily options article.
