The S&P 500 (SPX) clocked in its 22nd record high this year in the past week, closing March with a fifth-straight monthly gain and registering its best first-quarter gain in five years. The Dow Jones Industrial Average (DJIA) also clinched another record high, closing its best first quarter since 2021.
The Composite (NDAQ) and Nasdaq 100 (NDX) lagged over the past week, registering small declines as investors took profits after a record-setting run since hitting their October lows. However, the tech indexes also had a blockbuster first quarter, as the market rally was spurred on by an improving economic outlook, resilient profits at large companies, and optimism regarding Artificial Intelligence (AI).
On the economic front, markets are bracing for another data-heavy week, with crucial job market reports scheduled to be released on Friday. Last week, Federal Reserve Chair Jerome Powell said that monetary policy easing would not be appropriate until policymakers are certain that inflation is on track toward their 2% target. This confirmed Fed Governor Chris Waller’s previous remark that the central bank is “in no rush” to lower interest rates, as the labor market remains tight, and inflation continues to worry policymakers.
The policymakers have repeatedly reiterated that their policy decisions are based on the data , strengthening investors’ focus on these data releases.
Three Economic Events
Here are three economic events that could affect your portfolio this week. For a full listing of additional economic events, check out the TipRanks Economic Calendar.
» March’s ISM Manufacturing PMI – Monday, 04/01 – This report, released by the Institute for Supply Management, shows business conditions in the U.S. manufacturing sector. It is a significant indicator of the overall economic conditions. PMIs are considered one of the most reliable leading indicators for assessing the state of the U.S. economy, helping analysts and economists anticipate changing economic trends.
» March’s ISM Services PMI – Wednesday, 04/03 – This report shows business conditions in the U.S. services sector, which contributes over 70% of the U.S. GDP. PMI indices are leading economic indicators used by economists and analysts to gain timely insights into changing economic conditions, as the direction and rate of change in the PMIs usually precede changes in the overall economy.
» March’s Nonfarm Payrolls and Unemployment Rate – Friday, 04/05 – The Nonfarm Payrolls and Unemployment reports present the number of new jobs created during the previous month, along with the percentage of people actively seeking employment in the previous month. These reports are two of the most important economic indicators, as policymakers follow the shift in the number of positions since it is strongly associated with the health of the economy as a whole. One of the Federal Reserve mandates is full employment, and it considers labor market changes when determining its policy decisions.
For more exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.
