With signs of a weakening economy, last week, the S&P 500 lost 0.1%, the Nasdaq fell 1.1% and the Dow Jones rose 0.6%. As the economy cools, possibly to the point of a recession, investors are hopeful that the Federal Reserve will change course on their interest rate hikes. For financial markets, the next important test will be what the latest inflation data shows, which will be released on Wednesday morning - followed by the upcoming quarterly corporate earnings.
Economic reports from last week came back mostly negative: •Construction Spending - lower than expectation •Vehicle Sales - lower than expectation •Job Openings - lower than expectation •Private Employment - lower than expectation •Total Employment - lower than expectation •Consumer Credit - lower than expectation •Jobless Claims - higher than expectation This week, investors will look for guidance from economic reports like Small Business Optimism, Retail Sales, Consumer Sentiment and Jobless Claims.