What will drive the markets this week?
On Friday, U.S. equities concluded the day positively, witnessing the S&P 500 and Nasdaq achieve their highest closing levels since early 2022 following a robust U.S. jobs report that instilled investor optimism in a favorable economic soft landing.
For the week, the S&P 500 marked a 0.21% increase, extending its weekly gain streak to six—the lengthiest since November 2019. The Dow saw a marginal uptick of 0.01%, securing its sixth consecutive weekly gain, the lengthiest positive run since February 2019. Simultaneously, the Nasdaq posted a weekly gain of 0.69%.
Europe’s benchmark STOXX 600 index reached its highest level since early 2022, driven by a positive assessment of the U.S. labor market that bolstered investor risk appetite.
In the Asia-Pacific region, markets displayed mixed performance. Japan’s third-quarter GDP was unexpectedly revised downward, while India’s central bank maintained its benchmark lending rate.
This week, following the release of last week’s job and unemployment data, the market is poised for a Federal Reserve interest rate decision on Wednesday, widely expected to result in rates being maintained at their current level. Post-announcement, Federal Reserve Chair Jerome Powell will field media questions.
Investors will also gain insights into inflation trends with the release of the Consumer Price Index (CPI) on Tuesday, complementing recent reports indicating a deceleration in the pace of price increases. Wednesday will bring the Producer Price Index (PPI), shedding light on wholesale prices for businesses as another key inflation indicator.
While fewer earnings reports are scheduled, a handful of tech companies are set to disclose results. Oracle’s Monday earnings report is anticipated to gauge the demand for cloud and tech products, while Wednesday’s report from Adobe will provide insights into the reception of the software designer’s new artificial intelligence (AI) products. Intel, the latest chipmaker, will host a launch event during the week, offering glimpses into its AI offerings.
Events expected to move the markets this week
Monday, Dec. 11
- Oracle (ORCL) releases earnings
- Affirm (AFRM) fireside chat
Tuesday, Dec. 12
- Johnson Control (JCI) releases earnings
- Federal Open Market Committee (FOMC) meetings begin
- Consumer Price Index (November)
- Monthly federal budget (November)
- NFIB small business optimism (November)
Wednesday, Dec. 13
- Adobe (ADBE) releases earnings
- Producer Price Index (November)
- FOMC interest rate decision
- Federal Reserve Chair Jerome Powell press conference
Thursday, Dec. 14
- Costco Wholesale (COST) and Nordson Corporation (NDSN) release earnings
- Intel (INTC) “AI Everywhere” launch event
- Regeneron (REGN) ASH 2023 investor call
- Chewy (CHWY) inaugural investor day
- Initial jobless claims (Dec. 9)
- Import Price Index (November)
- Business inventories (November)
- Retail sales (November)
Friday, Dec. 15
- Darden Restaurants (DRI) releases earnings
- Industrial Production Index (November)
- Capacity utilization index (November)