Wall Street Trading Week Preview: Market Trends and Predictions

Trendspott Team

Feb 26 2023

stocks in the spott

After the PCE data showed a negative surprise, is there a possibility that the Fed will increase interest rates by 0.5%? Additionally, what developments can be expected at Tesla's investor conference, and what will be the electric vehicle delivery data of Chinese companies for February? Lastly, the reports of the week that are worth noting are Target and Salesforce.

On Friday, the PCE index - which is the index preferred by the Fed - revealed that inflation is more pronounced than it appears. It is possible to assert that it is not decreasing as rapidly as previously thought, but instead declining at a much slower pace than what the market had anticipated. Consequently, the Nasdaq index plummeted by 1.7%, and the S&P500 also experienced a 1% drop. Given the high figures, it is worth considering how this will impact the Fed's decisions.

This week's report:

On Wednesday, Tesla is scheduled to hold its investor conference, during which it will disclose intriguing details about its future plans, including the potential establishment of a new factory. Meanwhile, Chinese companies like NIO, XPENG, and Li Auto are set to reveal their vehicle delivery data for February.

What actions will the Fed take?

The index experienced a 0.6% surge in January, which is three times more than the previous month's increase. Furthermore, the preceding figure was also revised upward. In addition to this, the market had predicted a mere 0.3% increase. December's figures were also updated from 0.3% to 0.4%, despite the market only expecting an increase of 0.4%. Over the past 12 months, there has been a 4.7% increase, compared to January's 4.3%. Nevertheless, it is noteworthy that these figures are considerably higher than the inflation target of 2%, as well as the Fed's 2023 projection.

Indicators, Soft Landing, Hike

In summary, this figure - along with other indicators such as the robust employment report, surge in the consumer price index, and elevated consumer sentiment beyond market expectations - highlights that the economy is not slowing down, and the likelihood of a "soft landing" scenario seems more plausible than before. In such a scenario, the Fed would face challenges in curbing the rise in inflation. Consequently, the market is predicting a less than likely 50 basis point interest rate increase, but a slightly higher probability of a 25 basis point increase next month.

Unlock new Insights

Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.

Disclaimer: The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.

Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by TrendSpott including any of their affiliates ("TS").

This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.

TrendSpott

Get the pulse of the market

Find out what happening right now and get all the pieces of the puzzle on important data activity before the major news sources break the story and see what are the trends

FIND US ON

Receive our Daily Alerts

Enter your email to receive daily alerts

Home

Leading Gainers

Upgrades

Downgrades

Top Leaders

Expert Predictions for Wall Street Trading Week

Wall Street Trading Week Preview: Market Trends and Predictions

This week's report:

What actions will the Fed take?

Indicators, Soft Landing, Hike

Recommended

Experienced Traders: Avoid These 3 Mistakes

BlackRock: Fed Will Persist with Rate Hikes

What Fed's Pause on Interest Rates Means

Experts Predict Fed's Final Interest Rate Hike