Week of February 5 to 11, 2024 - A real-life test for stock markets

The week from Monday, February 5 to Friday, February 9, 2024, looks crucial for financial markets, with a series of events that could tip the stock indices. Between the monetary policy announcements by the FED, quarterly results from major publicly traded companies, and the release of key economic indicators, investors will have their work cut out digesting the stream of information.

The Fed in the Crosshairs

The televised address by the FED chairman Jerome Powell on Sunday, February 4, during the “60 Minutes” show has set the stage. Investors will be looking for any hint on the schedule and magnitude of future rate hikes. Today, Monday, February 5, the FED’s Loretta Mester, known for her hawkish stance on rates, will give a highly anticipated speech. Then on Wednesday, February 7, it will be the turn of the FED’s Atlanta president Raphael Bostic to speak.

With each statement, traders hope to gain clearer insight into the institution’s intentions regarding its monetary policy amid questions about a possible easing. More restrictive or more accommodating signals could provoke reactions in the indices. Each day will bring its share of news against a backdrop of uncertainty about the economic outlook.

A Deluge of Corporate Earnings on the Stock Market

At the same time, many heavyweights on Wall Street will publish their quarterly earnings. On Monday, February 5, it will be McDonald’s turn. On Tuesday, February 6, Eli Lilly and Snap will unveil their accounts. The next day, Wednesday, February 7, investors will review the performances of Alibaba, Walt Disney, and PayPal. Finally, on Friday, February 9, PepsiCo will present its stock market results.

Other highly anticipated releases in various sectors include Palantir on Monday 5, Ford on Tuesday 6. The stock price reactions will show whether these results reassure about the health of the companies, or conversely confirm investors’ fears about a sharp slowdown.

The week promises to be a real-world test for finance and stock markets weakened at the beginning of 2024 by the prospect of monetary tightening and fears of economic slowdown. The multiple speeches by FED officials and the quarterly results of American flagships could tip the scales one way or the other. It could lead to a continuation of index volatility or, conversely, the beginning of a rebound.

Investors will need to closely follow this flow of information rich with insights into economic and stock market outlooks. The week from February 5 to 11, 2024, could mark a turning point, whether positive or negative, for stock markets in search of direction at the start of the year.