This week: US500 consolidates ahead of US CPI release

The US500 stock index, which tracks the benchmark S&P 500, has posted its first weekly drop in 3 weeks.

Last Friday’s US jobs report was the latest in a string of data that point to a resilient US economy, which eroded bets for a Fed rate cut in June and weighed down the US500 last week.

This week features the highly anticipated US inflation release, as well as the unofficial start of the US earnings season.

Although the US500 index is projected to rise another 10% over the next 12 months and eventually touch 5660 by this time next year, traders will be taking things one week at a time.

Events Watchlist:
 

• Wednesday, April 10: US March consumer price index (CPI); FOMC meeting minutes

Even though the headline US CPI is predicted to tick higher, the other inflation numbers (including core CPI), are set to ease slightly lower last month.

Lower-than-expected inflation all round should bolster bets for a Fed rate cut in June while potentially keeping US500 above 5,2000.

More dovish clues out of the FOMC’s March meeting minutes, also due mid-week, should also keep an upward bias for this stock index.
 

• Friday, April 12: US earnings season kicks off

The quarterly financials announcements by the likes of JPMorgan, Wells Fargo, and Citigroup do sway US stock indexes.

After all, financial stocks make up 13% of the US500 index. Disappointing results from Q4 2023 out of these big Wall Street banks could pull the US500 further below the 5,200 mark.

Here’s a comprehensive list of other key economic data and events due this week:

Monday, April 8

• GER40 index: Germany February industrial production, trade balance
   
• US30 index: Speech by Minneapolis Fed President Neel Kashkari
   

Tuesday, April 9

• AU200 index: Australia April consumer confidence
   
• TWN index: Taiwan March CPI and PPI
   

Wednesday, April 10

• JPY: Japan March PPI
   
• NZD: RBNZ rate decision
   
• TWN index: Taiwan March trade balance
   
• US500 index: US March CPI; Fed meeting minutes; speech by Chicago Fed President Austan Goolsbee
   
• CAD: Canada rate decision
   

Thursday, April 11

• CNH: China March CPI and PPI
   
• EUR: ECB rate decision
   
• USD: US weekly initial jobless claims; speeches by New York Fed President John Williams and Boston Fed President Susan Collins
   

Friday, April 12

• SG20 index: Singapore 1Q GDP
   
• JP225 index: Japan February industrial production (final)
   
• CN50 index: China March external trade
   
• EUR: Germany March CPI (final)
   
• GBP: UK data dump – February monthly GDP, industrial production, trade balance
   
• US400 index: US April consumer sentiment; speech by San Francisco Fed President
  Mary Daly
   
• US500 index: US earnings season kicks off with JPMorgan, Citigroup, Wells Fargo