This week, Wednesday to Friday is crammed with economic releases, many of which will be key data points for the Fed’s April FOMC and have a significant impact on the Fed funds rate and the yield curve.
In this series, we cover the major data releases between Wednesday and Friday
All these releases will have an impact on both stock (VOO) and bond (BND) markets. As they pertain to inflation, economic growth, and the labor market, they’ll also impact the Fed’s decision on the timing of its increase in the Fed funds rate besides impacting yields on fixed-income securities.
Further, the timing of releases like the GDP, inflation estimates, and key labor market indicators will coincide with the Fed’s FOMC meeting announcement, providing further cause for volatility in markets. Although these releases usually cause system-wide market movements in both stock (VOO) and bond markets (TLT), key sectors to watch this week will be the manufacturing sector (XLI) and the consumer discretionary sectors (XRT). ETFs investing in the above sectors include the State Street Industrial Select Sector SPDR (XLI) and the State Street SPDR S&P Retail ETF (XRT).
In the next part of this series, we’ll preview the first-quarter GDP figures that will be released by the Bureau of Economic Analysis on Wednesday, April 30.