From Quiver Quantitative:

Summary: Wall Street experienced a turbulent trading session due to higher-than-expected inflation data, which dampened expectations for an imminent Federal Reserve rate cut, particularly in March. Analysts predict that the Fed’s tightening campaign is over, with rate cuts still on the table, albeit slightly delayed from market expectations. Corporate highlights also influenced market movements, such as a formal investigation into Boeing following a recent incident, and major U.S. banks preparing to report quarterly results. Other notable developments include Chesapeake Energy’s acquisition of Southwestern Energy and Airbus SE’s record sales.

Key points: Market volatility resulted from the surprising inflation data, which did not fundamentally alter the Fed’s trajectory. While initial rate cuts might occur later than March, consensus leans towards easing later in 2024. Notable corporate highlights include a formal investigation into Boeing, U.S. banks preparing to report quarterly results, and other significant corporate developments.

Looking ahead: Corporate earnings season will take center stage next week, potentially overshadowing lingering inflation concerns. Key U.S. banks will be offering insights into the financial sector’s health and economic outlook. Other areas to watch include a formal investigation into Boeing, developments in the aviation and energy markets, and major corporations’ quarterly results.



Read more: Market Adjusts to Inflation Reality