Key events and data to watch this week in US stock market

US CPI data release for the month of March will be a key event this week. The US inflation numbers for the previous month are to be announced on April 12, 2023. The annual inflation in February fell to 6% after recording 6.4% in January. Markets expect March inflation to cool down further along with a fall in core-inflation numbers. One of the primary drivers for the US Fed to decide on rate action later in May FOMC meeting will be the US inflation index data to be released this week on Wednesday, April 12 at 8:30 A.M. Eastern Time.

The CPI report due out this week will be crucial in determining how far the Fed raises interest rates. Markets anticipate that the Fed will prefer to increase rates at least once more in 2023 and then take a pause. Whether or not the Fed pivots and begins cutting rates in 2023 will be determined by incoming macroeconomic data in the second half of the year and how severe the lag effect of rate hikes has been on the US economy.

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FOMC minutes of the meeting held on March 21-22 will also get released this week. On April 12, at 2 P.M. Eastern Time, the Fed minutes will be rolled out for the market investors to peep into the Fed officials mind regarding inflation and interest rates.

The Producer Price Index (PPI) March 2023 data are scheduled to be released on April 13, 2023, at 8:30 A.M. Eastern Time. PPI programme tracks the average change in selling prices obtained by domestic producers for their output over time. Producer prices in the US unexpectedly declined in February, and the rise in prices (revised data) in January was not as significant as previously assumed, providing some encouraging signs in the fight against inflation.

The Earnings season has begun and some of the big US corporations will soon roll out their quarterly results. Along with the earnings, margins, revenues and profit numbers, equally important will be the management guidance for the investors to take a forward call.

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First Republic Bank, Washington Federal reports on April 12 while Progressive Corporation, Fastenal Company, Delta Air Lines results are to be reported on April 13. On the last trading day of the week, on April 14, quarterly results of bigwigs like UnitedHealth Group Incorporated, J P Morgan Chase, Wells Fargo, BlackRock, Citigroup Inc. will be announced.

Finally, investors will also get to hear from Fed officials this week. Regional bank presidents John Williams, Patrick Harker, Austan Goolsbee, Neel Kashkari, and Thomas Barkin are scheduled to speak this week.