US equities hovered around all-time highs as investors continue to consider the impact of rebounding inflation on monetary policy, and the S&P 500 was able to recover on Tuesday and hovered around its May 10 highs.
US stocks have traded in a relatively tight range near record highs in recent weeks as investors try to balance the economic recovery and Fed soft stance with inflation concerns, high valuations and imbalances in the global Covid vaccine rollout, and volatility has returned to the market ahead of the CPI report. and the Fed's rate decision next Wednesday.
S&P 500 - is on the rise
Brian Walsh, Jr., senior financial advisor to Walsh & Nicholson Financial Group, said: “If you look around, everything will get more expensive. This is what we are seeing, but the Fed continued to say that they are going to keep interest rates at bay, regardless of the data coming in. inflation. You can only take their word for it, and I think investors are doing just that. "
Global stocks are also hovering around record highs, suggesting that assurances from the Fed so far soothe concerns about a tightening by the Fed, but nevertheless, on Tuesday, traders were wary of inflation data, pushing the dollar to its first rise in three days.
Fiona Cincotta, senior financial markets analyst at City Index, said: “The tight trading ranges so far this month reflect the cautious market sentiment ahead of inflation. will act on a massive scale to calm the market. Delaying action or even inaction could trigger the economic turmoil that markets fear. "
Here are the key events to watch out for this week:
- Apple is holding its annual Worldwide Developers Conference until June 11;
- The decision of the European Central Bank and a press conference with President Christine Lagarde will be held on Thursday;
- Negotiations on a nuclear deal with Iran will resume in Vienna on Thursday;
- in the consumer price index in the US on Thursday;
- The G7 Leaders Summit will take place on Friday in Cornwall, England.
- Apple is holding its annual Worldwide Developers Conference until June 11;
- The decision of the European Central Bank and a press conference with President Christine Lagarde will be held on Thursday;
- Negotiations on a nuclear deal with Iran will resume in Vienna on Thursday;
- in the consumer price index in the US on Thursday;
- The G7 Leaders Summit will take place on Friday in Cornwall, England.
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