The week’s biggest spotlight is on Wednesday’s Consumer Price Index and Friday’s jobs report, which will provide a read on inflation. After last week’s jobs report, investors will also be paying close attention to Friday’s job openings and labor turnover survey data from the University of Michigan, which will offer a broad look at consumer sentiment.
On the corporate side, Oracle’s earnings on Tuesday are set to be the week’s main event, giving the market another look into the state of the AI trade after strong beats from Nvidia. Analysts are now talking about oil hitting $150 and the ensuing surge in global oil prices having ripple effects throughout the economy.
The Dow Jones Industrial Average shed about 1.0%, or roughly 450 points, on Friday to return a loss of 1.2% for the year. The tech-heavy Nasdaq Composite fell 1.6% on Friday and has lost roughly 3.7% since January 1.
The week’s big question on investors’ minds is the same as last week, but just a little more frantic: How long is this going to go on? As Goldman Sachs’ head of oil research Daan Struyven told Yahoo Finance, the effects of the war are nonlinear. For every day the energy shock continues, the worse its effect on the market will be.
At the same time, a series of redemptions by major private credit funds and a monthly jobs report that fell steeply below expectations have turned sentiment toward the underlying health of the US economy even more bearish.
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