Faltering stock rally looks for the next catalyst
The rally faces a major test in the next few days thanks to the full-on schedule of events, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Traders hunker down ahead of action-packed period
If markets are nervous waiting for the incoming barrage of data then they aren’t showing much sign of it. Stock markets on both sides of the Atlantic have made headway, with the mood bolstered by the strong US ADP and GDP reports this afternoon. Some crumbs of dovish comfort might fall from Powell’s table tonight, though the Fed chairman is no doubt determined not to give the impression that he is bowing to the president’s wishes, especially after last week’s entertaining encounter.
Microsoft and Meta results loom
There isn’t going to be much peace for investors regardless of the Fed decision, swiftly followed as it is by Microsoft and Meta numbers. The rally in equities looks increasingly ragged, and is probably overdue some corrective action. A disappointing set of numbers today and tomorrow might spark the pullback many are still waiting for.
Author
