Stocks Week Ahead: Rate Cut Hopes Hang in Balance Amid Key Data, Hawkish Fed
==========
The article discusses the upcoming week in the stock market, focusing on the balance between rate cut hopes and key economic data. Federal Reserve Chairman Jerome Powell will be speaking about the economic outlook and conducting a Q&A session at Stanford University. Economic data to be released includes the jobs report, retail sales report, and manufacturing data. The article suggests that robust economic data and hawkish Fed speak may reduce expectations for rate cuts in 2024. The article also mentions the Fed's Bank Term Funding Program (BTFP) and its recent decrease in size. The author speculates that the draining of the BTFP and quantitative tightening (QT) may lead to a shift in liquidity flow and potentially a decline in the NASDAQ 100. The article concludes by discussing the potential impact on reserve balances and the possibility of hitting the lower bound of what the Fed considers ample reserves. Overall, the article provides an analysis of the upcoming week in the stock market and the factors that may influence investor sentiment.
#StockMarket #RateCuts #EconomicData #FederalReserve #JeromePowell