Mid-Week Market Minute 5.08.24

Stocks Higher This Week; CPI Report Next Week 

Stocks were higher this week as the S&P 500 looked to extend its four-day winning streak into Wednesday’s session. As of Wednesday’s open, the S&P 500 was higher by about 1% on the week, while the Russell 2000 (small cap index) was higher by about 1.50%. International stocks outpaced domestic stocks, with the MSCI ACWI EX US up by about 1.2% this week. 

Following a crowded economic calendar last week, this week is relatively light on the data front. Thursday morning will bring jobless claims, a widely following indicator on the strength of the U.S. labor market. Meanwhile, we are at the tail-end of first-quarter earnings results with approximately 80% of S&P 500 companies having reported results. The S&P 500 is on pace to record its strongest quarter of earnings growth since 2022, and most earnings indicators remain above average.

With monetary policy and inflation top of mind for investors, speaking engagements from several Federal Reserve officials this week will be closely watched by the markets as well. Looking forward to next week, all eyes will be on the CPI inflation report due out on Wednesday morning. The markets are looking for headline inflation to show an increase of 0.4% during April, and year-over-year inflation to have increased by 3.4%. Core inflation, which the Federal Reserve watches more closely, is expected to increase 0.3% for April, and 3.6% on an annual basis. 

Source: GSAM, CNBC, JPMorgan

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