Inflation data published for the US during the previous week are showing that the inflation is a bit more persistent than previously expected, in which sense, the market is anticipating that the Fed might cut rates later during this year. The fear of inflation has pushed the US equities market to the lower grounds as of the end of the previous week. The S&P slowed down a bit its move toward the higher grounds, finishing the week at level of 5.117. The technology stocks were mostly under pressure, where Amazon and Microsoft were lower by 2%. Nvidia is still holding, gaining a modest 0.4% for the week.
For the week ahead a two-day Fed's policy meeting is scheduled, which might bring some volatility back on the equities market. Also it should be considered that FOMC economic projections will be revealed, in which sense, the market will get more information regarding the Fed`s view whether the inflation has cooled down enough, or they will need some more time to see if the inflation is on a clear down-path, which will determine timing of the first rate cut. Currently, the market is anticipating 99% odds that the Fed will not change interest rates at their March meeting. In this sense, some further corrections in the value of the equity market is probable during the week ahead.
For the week ahead a two-day Fed's policy meeting is scheduled, which might bring some volatility back on the equities market. Also it should be considered that FOMC economic projections will be revealed, in which sense, the market will get more information regarding the Fed`s view whether the inflation has cooled down enough, or they will need some more time to see if the inflation is on a clear down-path, which will determine timing of the first rate cut. Currently, the market is anticipating 99% odds that the Fed will not change interest rates at their March meeting. In this sense, some further corrections in the value of the equity market is probable during the week ahead.
