Understanding Why Stocks Hit New Highs
What’s in Today’s Report:
- Understanding Why Stocks Hit New Highs
- Weekly Market Preview: Does Goldilocks Growth and Inflation Data Continue?
- Weekly Economic Cheat Sheet: September Flash PMIs Tuesday, Core PCE Price Index Friday are Key Reports
Futures are modestly lower as markets digested last week’s new highs following a mostly quiet weekend of news.
Politically, the U.S. government could shut down this Friday and that is weighing slightly on markets, although we don’t view any temporary, partial shutdown as a risk to the rally.
There was no notable economic data overnight.
Today the only economic report is the Chicago Fed National Activity Index (E: -0.19) and it’s unlikely to move markets, so focus instead will be on the Fed.
There are several Fed speakers today and the most important of them is Williams at 9:45 a.m. ET. If Williams embraces two additional rate cuts this year, that should help support markets. More broadly, markets will want to see dovish tones from most Fed speakers going forward, confirming the Fed intends several more rate cuts. Other Fed speakers today include: Musalem (10:00 a.m. ET), Hammack (12:00 p.m. ET) and Barkin (12:00 p.m. ET).
