4 economic events that could impact your portfolio this week, April 22 – 26, 2024

Stock markets fell sharply on a weekly basis as the hawkish Fed and geopolitical tensions dampened risk sentiment, raising concerns about the overvaluation of technology stocks. AI hardware and semiconductor makers led the sell-off as cautious guidance from several industry leaders raised fears about demand for AI-related chips.

Federal Reserve officials have sounded increasingly hawkish in recent weeks as the strength of the economy and persistent inflation tempered expectations for rate cuts. In addition, some policymakers raised the possibility of a rate hike if consumer demand remains above the level needed to halt inflation, further depressing risk sentiment and increasing selling pressure.

Investors are gearing up for one of the busiest weeks of the year for earnings reports from leading companies across economic sectors. While their results and guidance will have a huge impact on the stock markets, investors are also advised to closely monitor the upcoming economic reports. With policymakers at a crossroads, any deviation from expectations could move the needle in either direction, greatly impacting market sentiment.

Four economic events

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

» April’s S&P Global Manufacturing PMI And S&P Global Services PMI (preliminary readings) – Tuesday, April 23 – These reports reflect business conditions in the manufacturing and services sectors, which together comprise almost the entire GDP of the country. PMI indices are leading economic indicators used by economists and analysts to gain timely insight into changing economic conditions, as the direction and pace of changes in the PMIs typically precede changes in the overall economy.

» GDP growth in the first quarter of 2024 on an annual basis (preliminary estimate) – Thursday 4/25 – This report provides an early glimpse into the health of the economy in the previous quarter. The US Bureau of Economic Analysis (BEA) estimates that the economy has slowed to 2.1% from 3.4% in the fourth quarter, while the Atlanta Fed’s GDPNow model predicts a 2.9% increase. Meanwhile, Goldman Sachs economists said a rise in retail sales in February and March prompted them to raise their estimate for the first quarter to a 3.1% annualized rate.

» March Core Personal Consumption Expenses (Core PCE) – Friday 26/04 – This report reflects the average amount that consumers spend monthly, excluding seasonal products such as food and energy. FOMC policymakers use the annual Core PCE Price Index as their main inflation gauge. BEA expects March’s Core PCE to match February’s 2.8% annual rate, well above the Fed’s 2% target.

» March Michigan Consumer Sentiment Index And Quantity expectations for consumer inflation over 5 years – Friday, 4/26 – These reports reflect the results of a monthly survey of consumer confidence levels and consumers’ views on long-term inflation in the United States. Confidence levels impact consumer spending, which contributes about 70% of U.S. GDP. The index of inflation expectations is used as part of the Fed’s calculations, the Index of Inflation Expectations.

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