The Federal Reserve’s announcement last week sent shockwaves through the stock market, with investors reacting positively to the news that the central bank still expects to cut interest rates three times this year. Despite a slight pullback on Friday, the major averages finished the week with gains of over 2% across the board, pushing stocks to record highs.
As we head into the new week, investors are looking to cap off a strong first quarter with the Nasdaq and S&P 500 both on track for double-digit percentage gains. The economic calendar will be highlighted by the release of the February Personal Consumption Expenditures (PCE) price index on Friday, which is the Fed’s preferred measure of inflation. Additionally, housing data and consumer confidence measures will be released throughout the week, with Walgreens Boots Alliance and McCormick set to report earnings.
The Fed’s future plans were a key focus of last week’s announcement, with the central bank revising up its GDP forecasts while still expecting to cut rates three times this year. Fed Chair Jerome Powell reiterated that rates are likely at the peak for this current tightening cycle, providing reassurance to investors. The Fed’s “asymmetric reaction function” means they are willing to cut rates if needed, even in times of strong economic growth.
In other news, Reddit’s highly anticipated IPO last week saw the company’s shares close at $45.94, giving it a market cap of $7.3 billion. The successful debut has raised questions about whether the IPO window is opening for other companies looking to go public.
Overall, the week ahead promises to be an eventful one for investors, with key economic data releases and earnings reports on the horizon. Stay tuned for more updates on the latest stock market news and events.
