The stock futures are portraying minimal activity as the new week kicks off, following a recent market downturn that temporarily halted the 2024 surge.
The previous week witnessed notable declines in key indices, with the Dow experiencing a 2.3% drop, marking its worst performance since March 2023. The S&P 500 also fell by almost 1%, marking its most significant weekly downturn since early January, while the Nasdaq Composite slipped by 0.8%, registering its fourth week of negative performance out of the last five.
Despite the overall downward trajectory, the market concluded last week on a positive note, boosted by a robust jobs report released on Friday. The unexpected rise in employment figures bolstered investor confidence, hinting at a potentially resilient economy that could sustain corporate profit growth even amidst the prospect of increased interest rates.
The Chief Economist at Comerica Bank, Bill Adams, remarked, “Employment figures and wage rates are steadily climbing, with total payrolls surpassing inflation rates, which is likely to motivate Americans to spend more in 2024, propelling the economy forward.”
Investors are eagerly anticipating the unveiling of the consumer and producer price indices for the month of March later this week, in a bid to garner deeper insights into the Federal Reserve’s measures to combat inflation.
Economic analysts foresee a 0.3% increase in the CPI (Consumer Price Index) for the previous month, with a year-over-year surge of 3.5%, and the report is scheduled to be disclosed on Wednesday morning.
The Founder of Vital Knowledge, Adam Crisafulli, emphasized the importance of inflation statistics, stating, “The Federal Reserve appears unworried about the robust employment advances… Inflation, on the other hand, is a more pressing issue, and it is imperative that the March price statistics (CPI, PPI, PCE) exhibit progress in curbing inflation.”
Investors are also closely tracking the escalation in bond yields and crude oil prices. The standard 10-year Treasury yield surged by approximately 20 basis points last week to reach about 4.4%, while U.S. crude oil values climbed to $87 amidst persistent geopolitical tensions.
Image Source: Bigc Studio / Shutterstock
