A cyclist passes the Federal Reserve headquarters in Washington. — Reuters
NEW YORK: A host of delayed employment, inflation and other data this week ahead will give a long-anticipated view of the US economy that could help guide markets into year-end.
US stocks pulled back to end the week, after the benchmark S&P 500 had ended last Thursday at a record closing high.
Back-to-back disappointing quarterly reports from Oracle and Broadcom, two signature stocks in the artificial intelligence trade that has propelled markets this year, weighed down the heavyweight technology sector.
The upcoming data is especially critical because investors and the Federal Reserve (Fed) have been navigating with little certainty since a 43-day federal government shutdown postponed key reports.
The US jobs report for November is due tomorrow, while the monthly consumer price index, which is closely watched for inflation trends, is out on Thursday.
“There has been a lack of clarity for investors,” said Jim Baird, chief investment officer with Plante Moran Financial Advisors.
“Strong corporate earnings certainly helped to support the markets.
“The Fed and anticipated rate cuts helped to provide a little bit of a boost.
“But now it’s time to turn our attention back to the underlying economy and what path we’re on.”
A divided Fed cut interest rates by a quarter percentage point last Wednesday for a third straight meeting as it seeks to shore up a weakening labour market.
But the central bank signalled borrowing costs are unlikely to drop further in the near term as it awaits more economic clarity.
US payrolls are expected to have climbed by a tepid 35,000 in November, according to a Reuters poll. — Reuters
