The Week Ahead

Markets are coming off a winning week. The biggest question is – will that continue?

Monday kicks off a big week for your money. Most companies have reported earnings thus far, but a few still remain to do so. I will be watching Oracle (ORCL) and BJs Wholesale (BJ) both of report on Thursday 3/9.

A slew of economic data comes in next week along with Fed Chair Jerome Powell set to testify on the economy and recent monetary policy action in front of Congress.

Recent economic data has proved the US economy to be resilient, but markets have not liked what Powell has had to say recently. Markets have reacted negatively to Fed speak calling for rates to be “higher for longer” and an increased terminal rate.

The yield on US Two Year, sometimes called the “Shadow Fed” due to the marketing pricing the yield to account for changes in short term rates that the Fed sets, shot up last week with growing acceptance that the Fed is going to hold rates for longer at a higher terminal rate to tame sticky inflation.

At least the Fed isn’t complacent on inflation this time around. It’s only a matter of time before inflation is a thing of the past and the market moves onto the next problem. Markets always climb the wall of worry.