What happened in the markets: 18 March - 22 March 2024
The week spanning from March 18th to March 22nd, 2024, marked a period of significant activity and movement within global financial markets. Throughout this time frame, investors navigated a landscape shaped by a flurry of central bank announcements and economic projections, with stocks ultimately showcasing resilience and closing the week on a positive note. Despite a subdued performance on Friday, major benchmarks such as the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite registered notable gains, propelled by optimistic economic forecasts and accommodative central bank policies.
Last Week at a Glance
Central banks worldwide, including the Federal Reserve, Bank of Japan, Swiss National Bank, and Bank of England, emerged as key players in shaping market sentiment. Of particular note was the Federal Reserve's decision to maintain its current rate policy while signaling the possibility of rate cuts in 2024. This dovish stance and similar messages from other global central banks bolstered investor confidence and contributed to the overall positive market sentiment observed throughout the week.
One key driver of market activity during this time was the Federal Reserve's announcement regarding its rate policy and economic projections. Despite inflation readings for January and February being slightly higher than expected, Fed Chair Jerome Powell struck a cautiously optimistic tone during the press conference, highlighting the Fed's expectation of inflation gradually receding to the 2% target. This reassurance and the Fed's indication of potential rate cuts in the coming year provided a welcomed boost to investor sentiment.
Other major central banks, including the Bank of Japan, Swiss National Bank, and Bank of England, also held policy meetings during the week. The Bank of Japan's decision to raise interest rates for the first time in 17 years marked a significant shift in policy stance, signaling a departure from its negative interest-rate regime. Similarly, the Swiss National Bank surprised markets by cutting rates, while the Bank of England maintained its policy rate.
The impact of these central bank decisions was evident across various asset classes, with bond markets experiencing upward momentum as Treasury yields softened. This reflected investors' confidence in the efficacy of central bank policies in supporting economic growth and stability.
Looking ahead, market participants will continue to monitor economic indicators and central bank communications for further insights into the trajectory of monetary policy and the broader economic landscape. The positive momentum observed in stocks and bond markets during the week underscores the resilience of global financial markets in the face of evolving macroeconomic dynamics and policy developments.
Top movers & shakers🎢
Several stocks made headlines during the week due to significant price movements and market-moving events:
FedEx (FDX): 📦 Surged 7.4% following robust quarterly results that surpassed estimates, showcasing resilience amid challenging economic conditions.
Nike (NKE): 👟 Plunged 6.9% to 2024 lows in response to disappointing earnings results, highlighting challenges the retail sector faces.
Reddit (RDDT): 📱 Faced volatility, closing the week down nearly 9% at $46 after recently going public with an IPO priced at $34 per share.
lululemon athletica (LULU): 🏋️♀️ Witnessed a significant decline of 15.8% after issuing disappointing guidance, signaling potential headwinds for the retail industry.
The Week Ahead: Mar 25 - Mar 29, 2024
As investors prepare for the upcoming week, they are focused on several key events and economic indicators that have the potential to impact market dynamics significantly. Firstly, attention will be on the earnings calendar, which is anticipated to be relatively light. Despite this, investors will closely monitor economic readings that offer insights into the health of various sectors. February's New Home Sales report is of particular interest as it provides valuable data on the state of the housing market, a crucial sector of the economy. Additionally, the February Census Bureau's Durable Goods report will shed light on consumer spending patterns, especially in areas such as automobiles and appliances, which can serve as indicators of overall economic activity. Furthermore, the March Conference Board's Consumer Confidence update will provide crucial insights into consumer sentiment, offering clues about consumer spending behavior and overall economic optimism.
In addition to these specific economic reports, investors will also closely watch broader economic indicators. The final estimate for the fourth-quarter Gross Domestic Product (GDP) is anticipated to provide a comprehensive overview of economic growth during the last quarter of the previous year. This data point is crucial for understanding the overall health and trajectory of the economy. Furthermore, the University of Michigan's final Index of Consumer Sentiment will offer valuable insights into consumer attitudes and expectations regarding economic conditions. Consumer sentiment can significantly influence spending patterns, investment decisions, and economic activity.
These economic indicators and events will be crucial in shaping investor sentiment and market movements in the coming week. Investors will carefully analyze the data releases to assess the economy's strength and anticipate potential market trends. As economic conditions continue to evolve, staying informed and attentive to these key indicators will be essential for effectively navigating the financial markets.
Earnings Outlook
Bitcoin Depot Inc (BTM): 💰 Will unveil earnings on the market of Monday, March 25th, 2024. The cryptocurrency sector has been bullish recently, making this earnings report particularly interesting for investors keen on Bitcoin and cryptocurrency trends.
Gamestop Corp (GME): 🎮 Set to report earnings post-market on Tuesday, March 26th, 2024.
Flutter Entertainment plc (FLUT): 🃏 Scheduled to report earnings on Tuesday, March 26th, 2024, pre-market.
Oxford Industries, Inc. (OXM): 👔 Will report earnings on Thursday, March 28th, 2024, post-market. Insights into consumer spending habits and fashion trends may be gleaned from this report.
Walgreens Boots Alliance, Inc. (WBA): 💊 Expected to report earnings on Thursday, March 28th, 2024, pre-market. The pharmaceutical and retail sectors will closely watch this report for indications of consumer health and retail sales performance.
Conclusion
In conclusion, the week of March 18th to March 22nd, 2024, showcased a dynamic interplay of central bank actions, economic projections, and corporate earnings reports, collectively influencing market sentiment and activity. Despite initial uncertainties, stocks demonstrated resilience and closed the week with notable gains, buoyed by optimistic economic outlooks and accommodative central bank policies. The dovish tilt from major central banks, particularly the Federal Reserve, reassured investors, contributing to positive market sentiment. Looking ahead to the week of March 25th to March 29th, 2024, investors will continue to closely monitor economic indicators, central bank communications, and corporate earnings reports for further insights into market trends and the broader economic landscape. With key events and earnings releases on the horizon, market participants remain attentive to opportunities and risks in navigating the evolving financial markets.
Source:
https://www.schwab.com/learn/story/schwab-market-update
https://www.edwardjones.com/us-en/market-news-insights/stock-market-news/stock-market-weekly-update
*Disclaimer:
This information is provided for general information purposes only. Consider your investment objectives, financial resources and other relevant circumstances carefully before investing. This is not an invitation or an offer to invest, nor is it financial advice or a recommendation to buy or sell any investment.
