The stock market posted its fifth consecutive week of gains, gaining momentum in December after last month’s strong performance. All major stock indexes hit new 2023 highs on Friday after Chairman Jerome Powell’s speech failed to dispel market expectations for interest rate cuts next year.
The Fed chairman said it was too early to say with confidence that the central bank had achieved a “sufficiently restrictive stance” in monetary policy, adding that expectations of rate cuts were premature. But he also acknowledged a slowdown in inflation in recent months, on the back of weak manufacturing reports and declining PCE inflation data, leading optimistic investors to believe policy rates have peaked. I accepted that he was doing something. Bond yields fell, supporting stock prices.
With no market-moving earnings announcements scheduled this week, investors will focus on a number of important economic reports scheduled to be released in the coming days. The primary focus will be on labor market data, which will help investors gauge the continuing impact of the Fed’s previous interest rate hike.
Here are four economic events that could impact your portfolio this week. Check out the TipRanks Economic Calendar for a complete list of all upcoming economic events.
» Factory orders for October – Monday, 12/4 – This report released by the U.S. Census Bureau measures total orders from manufacturers, including durable and non-durable goods. Therefore, this report provides an insight into the trends within the manufacturing sector. The report also serves as one of the leading indicators for the overall economy, as it reflects vendors’ outlook on consumer demand for their products.
» ISM Service PMI for November – Tuesday, 12/5 – This report published by the Institute for Supply Management shows the business status of the services sector in the United States, the largest and most important contributor to GDP. ISM Services PMI is a forward-looking indicator that provides important insight into the factors influencing GDP growth and inflation. When the business activity index rises, investors may assume that the stock market will rise because corporate profits are expected to increase.
» Non-agricultural employment in November and Unemployment rate – Friday, 12/8 – The U.S. Bureau of Labor Statistics releases the Nonfarm Employment and Unemployment Rate report, which includes the number of new jobs created in the past month and the number of people actively seeking employment in the past month. percentage is shown. These reports are considered two of the most important economic indicators for policymakers to track changes in the number of positions, as they are strongly correlated with the overall health of the economy. One of the Fed’s responsibilities is full employment, and it takes into account changes in the labor market when determining policy decisions, which affect capital markets.
» December Michigan Consumer Confidence Index (Preliminary Version) – Friday, 12/8 – This report published by the University of Michigan represents the results of a monthly survey on consumer confidence levels in the United States. The level of confidence affects consumer spending, which accounts for about 70% of U.S. GDP.