Stocks consolidate as attention shifts to economic data | MarketTalk: What’s up today? | Swissquote

Show notes

Even though we saw some consolidation on Friday following a significant rally during the week, last week ended on a great note for the major US, European and Japanese stocks. Chinese and British stocks are left behind the global rally.
It’s important to keep in mind that while everybody was watching Nvidia with their stomachs in their mouth - and the broad-based stock rally that followed its earnings, the US yields were gently drifting higher. This week, investors’ attention will gently shift from earnings to economic data. The latest US GDP update – due Wednesday - is expected to confirm a 3.3% growth in Q4, with significantly lower price index. And on Thursday, the PCE data are expected to confirm relatively soft figures – softer than the CPI, most probably thanks to the different weights that the index attributes to different categories of goods and services. In all cases, a strong growth could revive the goldilocks optimism if inflation numbers continue to trend lower. For the market rally to continue, we just need strong growth and soft inflation data from the US. Easy, no?
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