Wall Street experienced a rollercoaster week, with Friday’s bounce back not enough to offset the losses incurred earlier in the week. Despite strong jobs news and elevated but moderating wage inflation, the Dow Jones Industrial Average, S&P 500, and Nasdaq all finished lower for the week. The U.S. oil benchmark, West Texas Intermediate crude, saw a 4.5% increase for the week due to escalating conflicts in the Mideast and Ukraine.
Looking ahead, investors are keeping a close eye on two key inflation reports – the March consumer price index (CPI) and the March producer price index (PPI). These reports could sway the odds on when the Federal Reserve might begin cutting rates. Additionally, two Club names, Constellation Brands and Wells Fargo, are set to report quarterly earnings next week.
Constellation Brands will focus on beer sales momentum, while Wells Fargo may see a revision in net interest income guidance due to changing expectations around Fed rate cuts. The market is now expecting fewer rate cuts than previously anticipated, which could impact Wells Fargo’s outlook.
Overall, the market remains uncertain as trade tensions and geopolitical conflicts continue to weigh on investor sentiment. The upcoming earnings reports and economic data will provide further insight into the state of the economy and potential market movements. Investors are advised to stay informed and cautious in the current volatile environment.
