Monday's Market Minute: QE to QT That's Indigestion…

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We begin the week with investors expressing caution. The Nasdaq is officially in correction territory (the /NQ is down over 10% from the all-time high in November at 16,767.50), Bitcoin is back below 35K, and the S&P500 last week had its worst week since March 2020 as rates on the rise and inflation have investors uneasy about what’s to come. It looks like the Fed will have to act more aggressively to slow down the economy, pull back stimulus, and combat inflation. Everything combined is heavily weighing on tech shares and risk sentiment in general. In weeks past, earnings and economic data have helped investors shrug off the unknowns. It will be key to see if that’s the case again this week.

It's a busy week for companies reporting quarterly results; keep an eye on IBM, Halliburton, Phillips, Microsoft, GE, J&J, Tesla, AMD, Boeing, Apple, and Caterpillar to name a few.

We also have some economic data due out that could move markets. Stay dialed in on the housing numbers (New Home Sales and the FHFA House Price Index), Durable Goods Orders, GDP, and weekly Jobless Claims throughout the week, then Personal Income/Spending and Consumer Sentiment will cap things off Friday. 

Last, but not least by any means, we have the FOMC meeting this week. Wednesday, investors will look to Fed chair Jerome Powell to get further insight as to when the first rate hike will come and how fast they plan to reduce the balance sheet.

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This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.