© Reuters
Written by Liz Muir
Investing.com – Stocks swung on Thursday but were heading into the final minutes of trading in the green despite renewed concerns about interest rates.
The Fed is widely expected to raise interest rates by another quarter of a percentage point when it meets in March. Officials have been talking about the need to raise the rate above 5% and keep it there longer to tame persistent inflation, something that was reiterated in their latest meeting. But some officials wanted to move more forcefully.
Markets now think there will be another quarter point increase in May and possibly June, pushing the final price to 5.2% or higher. Investors are wondering how long the Fed will keep rates this high, and it is this concern that has weighed on growth stocks in recent days.
On Friday, the Core Personal Consumption Index, which the Federal Reserve uses to measure , is expected to be released on Friday morning.
Next week brings more data on the housing market as well as the manufacturing and services sectors, and there is still more evidence the Fed will use to determine its next move.
Here are three things that could affect the markets tomorrow:
1. Core PCE data
A reading for January is due tomorrow at 8:30 ET (13:30 GMT – 16:30 ET). Analysts expect it to rise 0.4% from the previous month and 4.3% for the year through January. The monthly reading will be higher than December, at . It is expected to rise by 1% and by 1.3%. Both will be for December.
2. Michigan Spirits
The University of Michigan reading for February is due at 10:00 ET. Analysts expect the reading to come in at 66.4, the same number last time.
3. Cinemark earnings
The chain of cinemas is expected to record Cinemark Hldg (NYSE:) a loss of 24 cents on revenue of $602.3 million.
before the data
The dollar index stabilized during today’s trading, after rising to its highest level in 6 weeks, driven by the strength of the Federal Reserve.
The US dollar derives its strength from the Fed’s tightening, because the high interest rates on the US dollar make it attractive, especially in light of its impact on the returns.
The technical reading of the dollar index on Investing.com shows a positive reading at the current levels, and it appears on the daily frame as follows:
And the move today remains slanted to the downside since yesterday’s Federal Reserve minutes.
The price in the informal session of spot gold contracts recorded the level of $1,822 an ounce.
On the technical side, on the daily frame, we see:
