Week Ahead: Rate Hikes, Impact of Economic Data

  • Investors are closely watching earnings and economic data releases to gauge the impact of the Federal Reserve’s interest-rate hikes on the U.S. economy
  • The Fed has been raising interest rates in an effort to reduce inflation, but this may also hinder economic growth and shrink bank profit margins
  • Shares of U.S. banks have been performing poorly due to concerns about a potential recession and weakening profit margins
  • U.S. Treasury yields have recently fallen to three-month lows, indicating that investors are becoming more risk-averse and seeking out safer investments, such as government bonds
  • Gold prices rose slightly on Friday despite expectations for more interest-rate hikes from the Fed, which can be seen as negative for gold

Next week, investors will be closely watching earnings and economic data releases for insights into whether the Federal Reserve’s will lead to a recession in the U.S. Some of the critical releases include data on Tuesday;…

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