After a strong start to the year, the market enters another pivotal week with key economic data and major tech earnings on the horizon. The Federal Reserve's interest rate decision and a slew of high-profile earnings reports will be front and centre.
Last week the S&P 500 ($SPX) (SPY) closed +2.76% thanks to strong earnings results for Netflix (NFLX) and financial stocks.
Here are 5 things to watch this week in the Market.
Fed Interest Rate Decision
Wednesday at 2 pm, the Federal Reserve will announce its latest interest rate decision. While no rate cut is expected, investors will closely analyse the accompanying statement and Jerome Powell's subsequent press conference for any hints about potential future rate cuts. Any signals about the timing of monetary easing could trigger significant market movement.
Big Tech Earnings
This week is packed with major tech earnings that could set the tone for the market. Apple (AAPL), Microsoft (MSFT), Meta Platforms (META), and Tesla (TSLA) are all reporting. These companies represent a significant portion of market capitalization, and their results could provide crucial insights into tech sector health, AI developments, and overall economic resilience.
Economic Data Deluge
Several key economic indicators are due out this week. Tuesday's Durable Goods Orders and Consumer Confidence report will offer glimpses into manufacturing activity and consumer sentiment. Thursday's Q4 GDP release will provide a comprehensive view of economic growth, while Initial Jobless Claims will shed light on the labor market's strength.
New Home Sales
Monday's New Home Sales report at 10 am could offer important insights into the housing market. With interest rates potentially influencing housing demand, this data point could provide clues about consumer spending and economic momentum.
Crude Oil Inventories
Wednesday's Crude Oil Inventories report at 10:30 am could impact energy stocks and broader market sentiment. With geopolitical tensions and global economic conditions affecting oil markets, this report could reveal important trends in energy demand and pricing.
Beyond the economic data, this week features a robust earnings lineup across various sectors. Visa and Mastercard will provide insights into payment processing and consumer spending trends. ExxonMobil's report could signal the health of the energy sector, while SoFi and Intel will offer perspectives on fintech and semiconductor industries. Starbucks' earnings may shed light on consumer discretionary spending and the restaurant industry's resilience in this economic environment.
Best of luck this week and don't forget to check out my daily options article.
