U.S. equity markets appeared to be on shaky ground late last Thursday after the release of new economic data suggesting inflation is moving in the wrong direction.1 Meta’s disappointing earnings Thursday evening also contributed to the market setback. The weakness was short-lived, however, as equity markets rebounded Friday after better-than-expected results from Alphabet and Microsoft came out that morning. Two more members of the Magnificent Seven will report their earnings this week, with Amazon on Tuesday and Apple on Thursday.2
This week, investors will have plenty of new information beyond earnings to digest including another two-day Federal Reserve (Fed) meeting starting tomorrow.3 The Fed is almost certain to hold interest rates steady again given the recent uptick in inflation. Fed Chair Jerome Powell’s press conference on Wednesday will be closely watched for clues about the potential timing for interest rate cuts.
Friday’s jobs report is expected to show continued signs of strength, with job gains of 250,000 and the unemployment rate holding steady at 3.8%.4 April would represent the fifth consecutive month with gains in excess of 225,000.5
Sources:
1Reuters – Wall Street stocks fall as weak GDP growth spreads rate-cut gloom; 4/25/24
2Klipinger – Kiplinger's Earnings Calendar for This Week (April 29-May 3); as of 4/29/24
3,4MarketWatch – U.S. Economic Calendar; as of 4/29/24
5Bloomberg
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