FOMC Minutes, Economic Data — Your Trading Week Ahead

Welcome to Your Trading Week Ahead for July 5th. We hope you enjoyed a safe and happy Independence Day weekend! As for the market, here’s what you need to know before you go…

Quick recap

Last week was another record-setting one for U.S. equity markets. The S&P 500 notched its 7th consecutive record close Friday, finishing the week 1.86% higher at 4,352. The Dow closed higher by 1.03% at 34,786. Tech stocks lead the way, as the Nasdaq closed at 14,639 — up 1.94% from the previous week.

What to watch this week

Traders will return from the Fourth of July to a shortened trading week on Tuesday. They’ll look ahead to several key economic reports and events in what appears to be an otherwise quiet week across the market.

The Fed’s June meeting minutes highlights the most critical things to watch.

Fed meeting minutes

The Federal Open Market Committee’s (FOMC) June meeting marked a notable shift in the central bank’s outlook. They updated a Summary of Economic Projections reflecting increased GDP, increased inflation expectations, and the possibility of two rate hikes in 2023. Chairman Jerome Powell also admitted they began “talking about talking about” tapering.

On Wednesday at 2pm ET, we’ll get a look at the meeting notes that might reveal the true sentiment of Fed officials when it comes to tapering. The minutes may also provide some clarification of what Powell actually meant by “substantial further progress” towards reaching the Fed’s goals.

Is the conversation around tapering picking up steam faster than Powell indicated? We’ll find out Wednesday.

Economic calendar

Here’s some of the most noteworthy events on the calendar this week with the potential to move markets.

• IHS Markit Services PMI (June) – Tuesday at 9:45am ET
• ISM Services Index (June) – Tuesday at 10am ET
• JOLTS Job Openings (May) – Wednesday at 10am ET
• FOMC Minutes (June) – Wednesday at 2pm ET
• Initial and Continuing Jobless Claims – Thursday at 8:30am ET
• Consumer Credit (May) – Thursday at 3pm ET
• Wholesale Inventories (May) – Friday at 10am ET

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