(Finance) – Closing day for the New York Stock Exchange, resting on the occasion of the celebrations for the anniversary of American independence. In fact, on 4 July 1776 the Continental Congress adopted the Indipendence declarationeffectively making the 13 American colonies autonomous from British rule.
The New York Stock Exchange closed thelast session of last week up: The Dow Jones was up 1.05%, the S&P 500 1.06%, while the Nasdaq Composite was up 0.81%. However, these small bounces cannot make you forget a nightmare first semesterwith the S&P 500 posting its worst performance of the period since 1970.
Investor sentiment remains negative due to runaway inflation and the Fed’s actions to contain it. Efforts by the US central bank, in the form of aggressive interest rate hikes, could indeed push the economy into recession. To get clearer indications, investors they will carefully observe the quarterly season (which will start in July).
“The market has started worry more about economic growth than about liquidity and inflation – Stephen Innes, managing partner of SPI Asset Management wrote in a note – Unlike previous declines, inflation is much higher and unemployment is much lower. These dynamics delay any potential accommodative central bank pivot despite the rapid shift in rate expectations. “
As for the macroeconomic data, Thursday Automated Data Processing (ADP) will disseminate the number of private sector employees in the US for the month of June, the Department of Labor (BLS) will communicate the number of people who have applied for unemployment benefits and the Bureau of Economic Analysis (BEA) to release May trade balance data. Gas storage and oil stocks are also scheduled.
On the day of Fridaythe US Department of Labor (BLS) will release June job market data, while the Census Bureau will release wholesalers’ sales and inventory for May.
On the monetary policy front, the Fed official will speak on Thursday Christopher Waller and the president of the St. Louis Fed James Bullard. The day before, Wednesday, the Federal Open Market Committee (FOMC) meeting minutes, a detailed account of the meeting held about two weeks earlier. The minutes offer insights into the FOMC’s stance on monetary policy, so traders scrutinize them for clues as to the outcome of future rate decisions.
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