Stock markets surged last week, with the S&P 500 (SPX), the Nasdaq-100 (NDX), and the Dow Jones Industrial Average (DJIA) reaching all-time highs, while the Nasdaq Composite (NDAQ) ended the week within 0.5% from a new record.
The rally was propelled by Nvidia’s blockbuster earnings report and rosy outlook, which boosted semiconductor stocks and the broader market. Nvidia itself set another record with the largest-ever single-day market cap increase, and the speed at which its market value doubled from $1 to nearly $2 trillion was less than half the time it took Apple (AAPL) to accomplish this feat.
This week, market participants will be focusing on economic reports, specifically Core PCE, the Fed’s preferred inflation indicator. Several policymakers have opined on the subject of the economy and interest rates in the last few days, voicing their concerns about sticky inflation and the hotter-than-anticipated job market. The Fed members said that the timetable for the first interest-rate cut is far from certain, with visible differences in opinion between the rate committee members.
Three Economic Events
Here are three economic events that could affect your portfolio this week. For a full listing of all upcoming economic events, check out the TipRanks Economic Calendar.
» Q4 2023 GDP Growth Annualized (second estimate) – Wednesday, 02/28 – This report will provide an updated estimate of a change in GDP in the previous quarter. After the third quarter’s surge of 4.9%, the economy was expected to have slowed to an annualized growth rate of 2%. However, the initial report published on January 21 estimated growth at 3.3%. The current estimate is expected to reflect a similar assessment.
» January’s Core Personal Consumption Expenditures (Core PCE) – Thursday, 02/29 – This report reflects the average amount of money consumers spend monthly, excluding seasonally volatile products such as food and energy. FOMC policymakers use the annual Core PCE Price Index as their primary inflation gauge. January’s Core PCE is estimated to have decreased slightly to 2.8% from December’s 2.9%. Two weeks ago, the CPI and the Core CPI inflation gauges surprised on the upside, coming in hotter-than-expected. Following this negative surprise, economists, policymakers, and market participants will be closely focusing on the PCE reports to understand whether the disinflationary trend has indeed stalled.
» February’s ISM Manufacturing PMI – Thursday, 02/01 – This report shows business conditions in the U.S. manufacturing sector. 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. Last week, the same indicator published by S&P Global showed a strong upward momentum in the manufacturing sector. All eyes will be on the ISM report to confirm the rebound.
For more exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.
