Before a number of significant events this week, including speeches from Federal Reserve Chair Jerome Powell today, important inflation data expected on Thursday, and the “unofficial” start of Q4 2022 earnings season on Friday, stock investors are exercising caution.
Although the majority of Wall Street bulls anticipate Powell to avoid any substantive policy discussion, others are concerned that he may now surprise them with another hawkish view for the Fed.
It’s important to note that the New York Federal Reserve’s monthly poll, which was issued yesterday, revealed that consumer expectations for spending and inflation both declined to their lowest levels since July 2021 and January 2022, respectively.
An update on the state of inflation will be given by the Consumer Price Index on Thursday, and another monthly fall is generally anticipated.
The NFIB Small Business Optimism Index is the sole data item due today.
Big Wall Street banks’ Q4 results “unofficially” start on Friday in terms of earnings, while some reports have already begun to trickle in.
