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3 economic events that could impact your portfolio this week, May 6 – 10, 2024

All major stock indexes and all 11 of the S&P 500 (SPX) sectors rose on Friday, lifting markets this week. The two consecutive weekly gains helped stocks recover much of the ground they lost during the three weekly declines in April.

Investor anxiety was palpable ahead of Wednesday’s Federal Open Market Committee (FOMC) meeting and veered in opposite directions. Although Fed Chairman Jerome Powell went from “when” to “if” on the prospect of rate cuts this year, he strongly opposed the possibility of a rate hike. With the ‘higher for longer’ doctrine already in place, markets breathed a sigh of relief upon hearing the news.

Powell also reiterated that the central bank will continue to rely on data and closely monitor incoming economic reports for input into its policy decisions. So when Friday’s labor market report came out “right on target,” showing job growth was weaker than expected and wage growth weakened, investors interpreted it as a sign that rate cuts for 2024 are still on the table.

While an important factor, the jobs numbers are just one data point that the central bank can feed into its models. With so much at stake, markets are expected to react strongly to future data releases, paving the way for volatile trading in the coming months.

Three economic events

Here are three economic events that could impact your portfolio this week. For a complete overview of additional economic events, check out the TipRanks Economic Calendar.

» Change in consumer credit in March – Tuesday 7/5 – This report calculates the change in the total amount of outstanding credits extended to individuals for personal expenses, excluding loans secured by real estate. Investors and analysts use consumer credit data to assess the extent to which consumers are using credit to pay for products and services, as the change in consumer credit has a strong correlation with both consumer confidence and spending.

» May Michigan Consumer Sentiment Index (preliminary reading) – Friday 5/10 – This report, published by the University of Michigan, presents the results of a monthly survey of consumer confidence levels in the United States. The level of trust affects consumer spending, which contributes approximately 70% of US GDP.

» Five-year consumer inflation expectations in May (preliminary reading) – Friday 5/10 – This report is the result of the research conducted by the University of Michigan. The survey results reflect consumers’ views on long-term inflation and are used as part of the Fed’s calculations of the Index of Inflation Expectations.

For more exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.