The Federal Reserve’s announcements regarding the potential interest rate cuts have propelled the stock market to record highs. The central bank’s indication of anticipating three interest rate cuts this year resulted in gains of over 2% across major averages. Despite a minor pullback, the Nasdaq and the S&P 500 are on track for double-digit percentage gains, signaling a strong first quarter.
As the holiday-shortened trading week approaches, investors are eagerly awaiting the release of the February Personal Consumption Expenditures (PCE) price index. The index, which is the Fed’s preferred gauge of underlying inflation, will be released on Friday. Furthermore, several Federal Reserve officials, including Chair Jerome Powell, are scheduled to speak. Their remarks will be closely monitored following last week’s dovish comments by Powell.
The upcoming economic calendar includes key data releases and central bank actions from various countries. Besides the U.S. core PCE, personal income and spending figures, investors will also be keeping an eye on French and Spanish inflation readings, as well as final Q4 GDP readings from the U.S. and UK. Additionally, Japan’s post-meeting summary from the Bank of Japan, along with Japanese retail sales and industrial production numbers, will be closely watched.
Investors are bracing for the impact of these economic releases and central bank actions on the global financial markets as they seek to make informed decisions in the week ahead.
