Last week, strong job numbers introduced uncertainty, with the S&P 500 falling by 0.93% and bonds dropping by 1.06%. Job creation and openings support economic growth but can result in persistent inflation and prompt the Federal Reserve (Fed) to maintain high-interest rates to fulfill its dual mandate of maximum employment and price stability.
Gold prices surged above $2,300 per ounce, reaching record highs before settling at $2,299 on Friday. There’s considerable buzz around gold trading at all-time highs. JPMorgan’s Thought of the Week and Chart of the Week provide context for why “Gold: Not as Shiny as Many Think.”
This week, the release of March inflation data, as measured by the Consumer Price Index (CPI), will adjust the market’s expectations for rate cuts in June and the rest of the year. March CPI is anticipated to decrease by 0.10% from February. On Friday, first-quarter earnings releases from some of the largest U.S. financial institutions, including JPMorgan (JPM), Wells Fargo (WFC), Citigroup (C), BlackRock (BLK), and State Street (STT), are scheduled.
Thank you for reading, and here’s to a great week ahead!
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