Company / Analytics

Analytics, 08 January 2024

What will drive the markets this week?

On Friday, U.S. stock indexes navigated a volatile session, ultimately closing with marginal gains. Despite these modest increases, the S&P 500 and Nasdaq Composite faced their most challenging weekly performance in months as they kicked off 2024.

All three benchmarks marked their initial weekly declines in ten weeks: the S&P 500 decreased by 1.54%, the Nasdaq Composite experienced a 3.26% slump, and the Dow Jones Industrial Average dipped by 0.59%.

The pan-European STOXX 600 concluded the day 0.3% lower, recovering some losses after a daytime drop of over 1%, resulting in a 0.5% weekly decline.

In Asia-Pacific markets on Friday, there was a mix of performances following a decline in the first few trading days of the new year. Most markets observed downturns at the close of the initial week of the year.

The majority of markets in Asia recorded weekly declines, with Hong Kong’s Hang Seng index down 2.8%, and South Korea’s Kospi experiencing a drop of more than 3%.

As we enter the first full trading week of the year, investors can anticipate crucial economic insights with the upcoming release of inflation data and earnings reports from major banks.

The Consumer Price Index from the Labor Department is scheduled for release on Thursday, offering a snapshot of consumer inflation trends. Following this, on Friday, attention will turn to the Producer Price Index, providing insights into wholesale inflation in the market. Additionally, the week will culminate with earnings reports from some of the nation’s leading banks, including JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC), Wells Fargo & Co. (WFC), Citigroup Inc. (C), and BNY Mellon Corp. (BK).

Further economic indicators to watch for during the week include reports on consumer credit, the federal trade deficit, wholesale inventories, and the NFIB Small Business Optimism Index. These data points will contribute to a comprehensive understanding of the economic landscape as the year unfolds.

Events expected to move the markets this week

Monday, Jan. 8

Tuesday, Jan. 9

Wednesday, Jan. 10

Thursday, Jan. 11

Friday, Jan. 12

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