What the Fed Decision Means for Markets
What the Fed Decision Means for Markets: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- What the Fed Decision Means for Markets: Still All About Growth
- Fed Statement and SEP Takeaways
- Lesser Followed, But Still Important Data Eases Stagflation Threat
- EIA Data Takeaways and Oil Update
Futures are rallying to new highs after the SNB unexpectedly cut rates overnight, the first major central bank to do so, while MU is up 18% pre-market on solid AI driven earnings which is bolstering big tech shares.
The March Eurozone Composite PMI rose to 49.9 vs. (E) 49.6 due to a 0.9-point rise in the Services index while the Manufacturing index unexpectedly fell 0.8 points to 45.7 pointing to an imbalanced EU economy that is at risk of slowing down meaningfully.
Looking into today session, there is a lot of domestic economic data to watch with Jobless Claims (E: 209K), the Philadelphia Fed Business Survey (E: -5.0), the PMI Composite Flash (E: 51.5), and the Existing Home Sales report (E: 3.92 million) all due to be released.
Additionally, traders will be focused on the BoE Decision and meeting minutes (8:00 a.m. ET) before the bell and then later the Fed’s Vice Chair, Michael Barr is schedule to speak at a University of Michigan round table event (12:00 p.m. ET).
Bottom line, after the Fed yesterday, investors will want to see data hold up well but not be so “hot” that it dents the case for three rate cuts before yearend. Data that comes in “too hot” or “too cold” will be a negative for stocks as the Fed has a very narrow path to achieving a soft landing here.
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