What will drive the markets this week?
U.S. stocks sold off on Friday after major U.S. banks’ results failed to impress, capping a week marked by market-moving inflation data, evolving expectations for U.S. Federal Reserve policy, and looming geopolitical tensions.
The S&P 500 index notched its biggest weekly percentage loss since January, while the Dow Jones Industrial Average’s weekly loss was its steepest since March 2023.The Dow Jones Industrial Average fell 475.84 points, or 1.24%, to 37,983.24. The S&P 500 lost 75.65 points, or 1.46%, at 5,123.41 and the Nasdaq Composite dropped 267.10 points, or 1.62%, to 16,175.09.
European shares were flat on Friday after hitting a one-week high in early trade, as rising tensions in the Middle East eroded some of the continued optimism around the European Central Bank’s hint of imminent rate cuts. The pan-European STOXX 600 ended the session 0.1% higher, after rising as much as 1.2% during the day, but logging its second straight weekly decline.
Asia-Pacific markets were mixed Friday after an inflation-fueled selloff in the previous session, with investor assessing economic data from Singapore and South Korea.
Oil prices rose on Middle East tensions.
This week, investors will keep a close eye on cryptocurrency as the bitcoin halving looms, expected on Saturday or even sooner. The anticipated reduction in coin availability is poised to impact its price.
This week, earnings reports remain in focus, with numerous financial institutions set to unveil their quarterly financial results. Among them are Goldman Sachs (GS), American Express (AXP), Bank of America (BAC), Morgan Stanley (MS), and Charles Schwab (SCHW). Additionally, Netflix (NFLX), United Airlines (UAL), and Procter & Gamble (PG) are slated to announce their earnings.
Market observers can also anticipate insights from several Federal Reserve officials, alongside scheduled releases of regional economic data and housing market reports.
Events expected to move the markets this week
Monday, April 15
- New York Fed’s Empire State manufacturing survey (April)
- U.S. retail sales (March)
- Business inventories (February)
- Homebuilder confidence (April)
- Dallas Fed President Lorie Logan and San Francisco Fed President Mary C. Daly deliver remarks
- Goldman Sachs, Charles Schwab, and M&T Bank (MTB) report earnings
Tuesday, April 16
- Housing starts (March)
- Building permits (March)
- Industrial production (March)
- Capacity utilization (March)
- UnitedHealth Group (UNH), Johnson & Johnson (JNJ), Bank of America, Morgan Stanley, BNY Mellon (BK), and PNC Bank (PNC) report earnings
Wednesday, April 17
- Mortgage applications (Week ending April 12)
- Federal Reserve Beige Book
- United Airlines, Abbott Laboratories (ABT), U.S. Bancorp (USB), Travelers Cos. (TRV), Citizens Financial (CFG), First Horizon (FHN), and Discover Financial Services (DFS) report earnings
Thursday, April 18
- Initial jobless claims (Week ending April 13)
- Philadelphia Fed manufacturing survey (April)
- Existing home sales (March)
- U.S. leading economic indicators (March)
- New York Fed President John C. Williams and Atlanta Fed President Raphael Bostic deliver remarks
- Netflix, Intuitive Surgical (ISRG), and Infosys (INFY) report earnings
Friday, April 19
- Chicago Fed President Austan Goolsbee delivers remarks
- Procter & Gamble, American Express, Fifth Third Bancorp (FITB), and Huntington Bancshares (HBAN) report earnings
Saturday, April 20
- Possible bitcoin halving event