What will drive the markets this week?
On Friday, U.S. stocks closed on a positive note as a robust jobs report underscored the resilience of the economy, potentially delaying any interest rate cuts by the Federal Reserve. The S&P 500 saw gains across all major sectors, with communication services, industrials, and technology leading the pack. The overall weekly performance was mixed, with the Dow slipping 2.3%, the S&P 500 down 1%, and the Nasdaq declining 0.8%.
In Europe, markets experienced a downturn, with the STOXX 600 plummeting 0.9% to its lowest point in over two weeks, driven by cautious remarks from Federal Reserve officials, escalating tensions in the Middle East, and stronger-than-expected U.S. job data.
Across Asia, MSCI’s broad index of Asia-Pacific shares excluding Japan fell by 0.45%, with thinner trading volumes due to a holiday in China. Tokyo’s Nikkei dropped by 2%, partly influenced by a stronger yen amid expectations of further rate hikes and increased verbal intervention from Japanese authorities. Hong Kong’s Hang Seng Index remained relatively unchanged.
This week, key data highlights include fresh inflation figures and the release of big banks’ first-quarter earnings reports. On Wednesday, attention will be on the Consumer Price Index (CPI) inflation data for March, closely monitored by Federal Reserve officials in their assessment of potential future interest rate adjustments. Throughout the week, several Fed officials are scheduled to deliver remarks, providing further insight into monetary policy considerations. Additionally, market observers will have the opportunity to analyze the Federal Open Market Committee (FOMC) meeting minutes and the results of the Michigan consumer sentiment survey.
The commencement of earnings season for the first quarter of 2024 will be marked by major financial institutions reporting their financial performance. Notable banks such as JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C) are among those expected to disclose their results.
Events expected to move the markets this week
Monday, April 8
- PACS Group and UL Solutions have initial public offerings (IPOs) that could price this week
- Minneapolis Fed President Neel Kashkari delivers remarks
Tuesday, April 9
- NFIB small business optimism index (March)
- WD-40 (WDFC) and Tilray Brands (TLRY) report earnings
Wednesday, April 10
- Consumer Price Index (March)
- Wholesale inventories (March)
- March Federal Open Market Committee (FOMC) meeting minutes
- U.S. monthly federal budget (March)
- Chicago Fed President Austan Goolsbee delivers remarks
- Delta Air Lines (DAL) and Applied Digital (APLD) release earnings
Thursday, April 11
- Initial jobless claims (April 5)
- Producer Price Index (March)
- New York Fed President John C. Williams and Atlanta Fed President Raphael Bostic deliver remarks
- Constellation Brands (STZ), Fastenal (FAST), and CarMax (KMX) report earnings
Friday, April 12
- Michigan Consumer Sentiment Index (April preliminary)
- Atlanta Fed President Raphael Bostic and San Francisco Fed President Mary C. Daly deliver remarks
- JPMorgan Chase (JPM), Wells Fargo (WFC), BlackRock (BLK), Citigroup (C), State Street (STT) State Street Bank and Trust Company. “1Q 2024 Earnings Conference Call.”, and Progressive (PGR) report earnings