The U.S. stock market is facing a period of consolidation after a strong rally last week, with investors eagerly awaiting more cues on inflation and the Federal Reserve’s next moves.
Wall Street indexes hit record highs last week following the Fed’s indication of multiple interest rate cuts this year. However, the rally cooled on Friday, leading analysts to predict some near-term consolidation as traders lock in profits.
The S&P 500, Dow Jones, and Nasdaq all saw mixed results on Friday, but remained close to their record highs for the year. Quarter-end repositioning could also contribute to some weakness in the market.
Investors are now looking ahead to key economic data, including the PCE inflation data due this Friday. With inflation still above the Fed’s target of 2%, the central bank’s stance on interest rates will be closely watched.
A number of Fed officials are scheduled to speak this week, including rate-setting committee members. Fed Chair Jerome Powell is also expected to address the market after hinting at a dovish tone in the last Fed meeting.
Overall, the market remains on edge as investors seek more clarity on inflation and the Fed’s monetary policy direction in the coming weeks.
