This week, the New York Stock Exchange (NYSE) is expected to show volatility in the minutes of the Federal Open Market Committee (FOMC) regular meeting and the announcement of the personal consumption expenditure (PCE) index in January.
According to market watch, the Dow Jones 30 Industrial Average fell 0.13% last week, showing a weak trend for three consecutive weeks. The S&P 500 Index fell 0.28% during the week. The Nasdaq rose 0.59 percent in the week thanks to gains early in the week.
The market is paying attention to the FOMC minutes that can examine the Fed’s monetary policy in the future. The minutes of the FOMC, held from January 31 to February 1, will be released on the 22nd.
The Federal Reserve System (Fed) raised its key interest rate by 0.25 percentage points at the last FOMC. At that time, it was reported that the Fed members unanimously decided on the increase.
Federal Reserve Chair Jerome Powell noted at a press conference held after the FOMC that inflation has begun to slow down, but stressed that the future process will not be smooth.
The NYSE market is expected to be affected by what opinions Fed members shared on future monetary policy, hence showing the volatility.
Inflation slowed slower than market expectations as the Consumer Price Index (CPI) released last week exceeded market expectations.
The U.S. Department of Labor announced on the 13th that the consumer price index (CPI) growth rate in January was 6.4%, down slightly from the previous month’s growth rate of 6.5%. The figure marked the seventh consecutive month of slowdown, but the growth rate exceeded market expectations.
Producer prices (PPI) in January also rose 6.0 percent year-on-year, exceeding market expectations of 5.4 percent.
As inflation slows slower than expected, concerns are growing on Wall Street that the Fed’s monetary tightening will be prolonged.
PCE, the Fed’s preferred inflation indicator, will be announced on the 24th.
Wall Street expects the core PCE to rise 0.5% in January, up from a 0.3% increase in December last year. Compared to the previous year, it is expected to be 4.4%, the same level as the previous month.
Major companies will also announce their earnings. WalMart and Home Depot are scheduled to release their earnings on the 21st, and Nvidia and eBay on the 22nd.
Meanwhile, the New York Stock Exchange will be closed on the 20th for the ‘President’s Day’ holiday.