How Much Has the Bullish Case Deteriorated?
What’s in Today’s Report:
- How Much Has the Bullish Case Deteriorated?
- Weekly Market Preview: Can AI Enthusiasm Stabilize?
- Weekly Economic Cheat Sheet: Important Growth Data Despite the Short Week
Futures are slightly higher as investors digest last week’s volatility following a generally quiet weekend of news.
Most global markets are higher on momentum from Friday’s U.S. rally, except Japanese shares which fell sharply (down more than 2%) after unions negotiated more pay increases, boosting chances for a rate hike.
Economically, the only report was German IFO Business Expectations which missed expectations (90.6 vs. (E) 91.4).
This is a holiday shortened week but the “catch up” in economic data from the government shutdown will continue despite only three and a half trading days. As a general rule, the more Goldilocks the data (so basically at expectations) the better as it’ll keep growth expectations stable but boost rate cut chances.
Economic reports we’re watching today include the Chicago Fed National Activity Index (E: -0.12) and Industrial Production (E: 0.1%).
