This week, the economic calendar is packed with events that have the potential to impact the stock market and the NASDAQ 100 (NASDAQ: QQQ). Here’s a brief analysis of the most important events and their potential impact:
12-12-2023: Consumer Price Index (CPI) and Core CPI
These two events are crucial as they measure inflation in the economy. The Consumer Price Index (CPI) measures the average change in prices paid by consumers for goods and services. The Core CPI excludes volatile food and energy prices. Higher-than-expected readings could lead to a more hawkish stance from the Federal Reserve, which might negatively affect the stock market and the NASDAQ 100.
12-13-2023: Producer Price Index (PPI) and Core PPI (Federal Reserve Interest Rate Decision at 1PM EST)
The Producer Price Index (PPI) measures the average change in prices received by domestic producers for goods and services. The Core PPI excludes volatile food and energy prices. Similar to CPI and Core CPI, higher readings could lead to a more hawkish stance from the Federal Reserve, potentially impacting the stock market and the NASDAQ 100.
12-14-2023: Retail Sales and Retail Sales ex-Auto
These events provide insights into consumer spending, which is a crucial driver of economic growth. Higher-than-expected readings could signal a strong economy and might be positive for the stock market and the NASDAQ 100. However, if the numbers are too high, it might also raise concerns about inflation, which could lead to a more hawkish stance from the Federal Reserve.
12-15-2023: Unemployment Claims and Philadelphia Fed Manufacturing Index
Unemployment claims data is important for gauging the health of the labor market. A lower number of claims indicates a stronger labor market, which could be positive for the stock market and the NASDAQ 100. The Philadelphia Fed Manufacturing Index measures manufacturing activity in the Philadelphia region. A higher reading indicates an expanding manufacturing sector, which could be positive for the stock market and the NASDAQ 100.
Potential NASDAQ 100 (QQQ) Trajectory
The NASDAQ 100 is heavily influenced by technology and growth stocks. The impact of the economic calendar events on the NASDAQ 100 will largely depend on the market’s interpretation of the data and its implications for the Federal Reserve’s monetary policy. If the data points to a strong economy with manageable inflation, the NASDAQ 100 could see a positive week. However, if the data suggests high inflation or a potential slowdown in economic growth, the NASDAQ 100 might face some headwinds.
In conclusion, the upcoming week is filled with important economic events that could have a significant impact on the stock market and the NASDAQ 100. Investors should closely monitor the data releases and be prepared to adjust their investment strategies accordingly.
by Steve Macalbry
Disclaimer: This article is intended for informational purposes only. It should not be considered financial or investment advice. We do not hold any form of equity in the securities mentioned in this article. Always consult with a certified financial professional before making any financial decisions.