Happy Sunday! An action-packed week lies ahead for markets. Major economic news will be released throughout the week. Most noteworthy will be employment numbers including the ADP employment report, unemployment rate, and jobless claims. On top of this, there will also be further information on inflation. On Thursday, investors will be keeping a close eye on the PCE price index which has consistently shown rampant inflation. Various investors are still concerned about an overly hawkish Federal Reserve too.
Analysts have also been keeping an eye on developments in Ukraine, According to the BBC, the “next round of face-to-face negotiations between Ukraine and Russia will take place from Monday in Turkey.” Any positive developments could seriously reassure investors. In addition, US crude oil prices have risen again after a brief drop below $100. Gas and oil companies have remained some of the only stocks to see positive returns YTD. There are also concerns that other rising commodity prices, including ores and wheat, will contribute even more to inflation.
Looking back though, the S&P500 has had back-to-back weeks of positive returns. There is definitely some room for cautious optimism as investors have began purchasing stocks at discounted prices. One thing is certain, the economic news and possible political developments this week will have to be watched closely.