US Markets Caught Between Economic Data and Monetary Policy Uncertainty

Wall Street continues to stand firm near its recent peaks, as investors appreciate the calm before the storm of upcoming economic data. Although no major price movements were recorded at the start of the week, the impending release of inflation data and the ISM indicator from the manufacturing sector could provide fresh impetus in the stock market. Ahead of the trading day, the Dow Jones Industrial is showing slight weakness according to IG, while the Nasdaq 100 expects minimal gains. A fresh data impulse is expected from the upcoming Consumer Confidence from the Conference Board, though its importance is overshadowed by the inflation and ISM data. These data points have significant weight on the monetary policy direction of the US Federal Reserve, which has shifted hopes for imminent interest rate cuts to late spring. Should inflation expectations be exceeded and the ISM Manufacturing Index improve, these expectations are likely to be tempered. Investors are also focused on the quarterly results of some heavyweights. The market awaits the results of online auction house eBay. Meanwhile, already published quarterly figures from companies like Zoom Video have caused a stir, with their shares buoyed by growth and buyback announcements. In contrast, iRobot has lost shares after announcing sales declines and a loss, whereas Workday has impacted investor sentiment with its prudent forecast for subscription annual revenue and acquisition announcement. Shares related to cryptocurrencies are also drawing strong interest, stimulated by a rise in Bitcoin prices and purchases by large institutions like MicroStrategy. A wide array of crypto-related stock values, including Cleanspark and Coinbase, as well as Riot Platforms, saw substantial pre-market gains. Among smaller firms, Janux Therapeutics has caught attention with its shares nearly doubling due to positive clinical data for its programs, a trend that began last week and seems steady despite a recent setback.