Stocks in for Wild Trading Week as Economic Data Tests Fed's Rate Cut Resolution
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This week is expected to be volatile for stocks as economic data tests the Federal Reserve's rate cut resolution. On Friday, a PCE report is expected to show a gain of 0.4% in February, pushing the 3-month rate of change up to 3.5% and the 6-month rate of change up to 2.9%. Atlanta Fed Governor Bostic now only sees one rate cut in 2024, down from his previous expectations of 2. The Fed's promise of rate cuts may be more than what is likely to be given, and they may walk back those rate cuts over time. The inflation swaps market is pricing in hotter CPI prints for April and May. Investment grade spreads and high yield spreads are rising, indicating potential tightening of financial conditions. The S&P 500 index is at the upper end of its rising channel and may move lower. The Nasdaq 100 index is in an ascending broadening wedge pattern. It is important to monitor these factors closely.

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https://www.investing.com/analysis/stocks-in-for-wild-trading-week-as-economic-data-tests-feds-rate-cut-resolution-200647060