Heavy Markets | May 17, 2024

Markets saw heavy moves because of inflation data. What could carry the markets in the coming weeks?

Monday                      S&P 500 0.02% | NASDAQ 0.29%

There were no earnings reports or economic data on the day. The market moves (or lack there of) were in anticipation of a busy week. Markets will get a bevy of data in the form of wholesale inflation, consumer inflation, and jobs data. All news that will influence future expectations around interest rates.

Tuesday                       S&P 500 0.48% | NASDAQ 0.75%

One major company reported earnings, with no missed earnings expectations. Producer Price Index (PPI) data firmed in April. Markets ended in the green despite the data showing higher than expected inflation. The higher inflation could signal a longer waiting period for monetary policy relief from the Federal Reserve Board (FRB).

Wednesday                  S&P 500 1.17% | NASDAQ 1.40%

One major company reported earnings, with no missed earnings expectations. Consumer Price Index (CPI) data came in softer than expected and Retail Sales were flat. Both data points led to an expected rally. Softer economic data and weaker inflation both are signals that FRB stimulus should come sooner than later.

Thursday                     S&P 500 0.21% | NASDAQ 0.26%

Five major companies reported earnings, with one missing expectations. Housing data for April slipped more than expected. Initial jobless claims came in slightly hotter than expected. Even at the more elevated level, initial claims remain benign. The markets pulled back a little bit of the gains from the jump on Wednesday. The data on Thursday pointed to a jobs market beginning to show cracks through higher initial claims.

Friday                          S&P 500 0.12% | NASDAQ 0.07%

No earnings report and minimal economic data occurred on Friday. The week culminated with flat markets, which means that the week ended in the green.

Conclusion                  S&P 500 1.54% | NASDAQ 2.11%

Markets grew for the week with crucial inflation data at the center of the drama. This coming week has far less dramatic data releases but will give us insights into the strength of the consumer. That news does not come until Friday, however. With little in the form of data, open market rates and commodity prices could carry more meaning for investors.

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