Three Things to Watch
- The U.S. Federal Reserve (Fed) will announce its latest interest rate decision on Wednesday followed by a press conference from Fed Chairman Powell. The futures markets are pricing for no cut this week and only one for the balance of 2026. The sharp increase in energy prices has clouded the Fed’s outlook, simultaneously potentially boosting inflation and providing a drag on growth.
- Energy prices will remain in focus after last week’s wild ride. Crude oil trades in a range between $119 and $76 over the past five trading days, and U.S. strikes near Iran’s key hub (Kharg Island) have heightened fears of further disruption.
- Economic data includes leading indicators, industrial production and another look at inflation on Wednesday from the Producer Price Index (PPI). Core PPI has trended steadily higher since last August. It is expected to be up 3.7% on a year-over-year basis.
Three Things to Know
- All members of the Magnificent 7 are down on the year and underperforming the S&P 500. (Source: Charlie Bilello)
- The 10 biggest companies in the S&P 500 make up almost 40% of the index, and if Anthropic, OpenAI and SpaceX are added later this year, the concentration could approach 50%. The bottom line is that the S&P 500 basically doesn’t offer much diversification anymore. (Source: Torsten Slok)
- The NCAA Men’s Basketball Tournament starts this week with 68 teams. The odds of filling out a perfect bracket are about 1 in 9.2 quintillion. (Source: Mental Bomb)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.