Investors feared the Fed rates could tip the economy into a recession. However, many are betting that inflation is cooling down. They will brace for consumer price index data coming Thursday and big bank earnings on Friday for any clues into the health of the economy or signals of how the Fed will move interest rates going forward.
“We’re going to probably be in this really tight range and most likely directionless until we get through at least Thursday with the CPI report and then the kickoff to earnings season, which is also later this week,” said Megan Horneman, chief investment officer at Verdence Capital Advisors. “Right now, I just think the market’s kind of caught in the middle of waiting for the economic data and absorbing some of the Fed speech.”
