This week’s calendar is chock-full of important economic and earnings releases, with the first Federal Open Market Committee meeting of 2022 to be held on Tuesday and Wednesday. The Federal Reserve (Fed) meeting announcement and press conference on Wednesday afternoon should provide investors with more clarity on the pace of interest-rate hikes this year and plans for the Fed to begin reducing its balance sheet.
Earnings from Apple and Microsoft — the two largest components of the capitalization-weighted S&P 500 Index — highlight a busy week of earnings, which take on added significance in light of the recent sell-off in equities and disappointing results from Netflix.
Important economic releases this week include consumer confidence on Tuesday, new home sales on Wednesday and the first print for fourth quarter gross domestic product on Thursday. Fed policymakers will also be looking for some signs of relief from the recent spike in inflation with the latest Personal Consumption Expenditures print on Friday. The recent surge in market volatility is likely to show no signs of letting up this week as markets digest a wide range of economic data.
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