As crypto markets show signs of recovery, there is a busy week ahead in the United States economic calendar that could potentially refuel momentum for the bears. The Federal Reserve’s key inflation metric will be in the spotlight, impacting monetary policy going forward. New home sales figures, S&P Global Manufacturing PMI, and S&P Global Services PMI preliminary readings are all set to be released in the coming week. These indicators offer insights into the overall economy and business conditions in the manufacturing and services sectors, which could have ripple effects on market sentiment.
With the release of the Q1 GDP Growth Annualized preliminary estimate and Core Personal Consumption Expenditures (PCE) report, investors will gain an initial glimpse of the economy’s health and inflation trends. The Federal Reserve policymakers are closely monitoring inflation rates, and any deviation from expectations could strongly affect market sentiment. The Michigan Consumer Sentiment Index and Consumer Inflation Expectations reports will also shed light on consumer spending patterns and overall confidence levels.
Around 20% of S&P 500 companies, including tech giants like Microsoft and Alphabet (Google), will be reporting their quarterly earnings this week. This could bring about additional market volatility as investors react to the financial performance of these major corporations. The performance of these companies could potentially influence overall market trends and sentiment.
Despite the economic events unfolding, the crypto market cap returned to and held the $2.5 trillion level over the weekend, with Bitcoin leading the charge. Ethereum also showed signs of recovery, reclaiming the $3,200 level. Altcoins such as LINK, NEAR, and DOT saw impressive gains on Monday morning. However, market volatility is expected to increase if the PCE figures come in significantly different from expectations later in the week.
As economic indicators are released throughout the week, investors in both traditional markets and crypto markets will be closely watching for any signs of shifts in economic health, inflation rates, and consumer sentiment. The outcome of these events could potentially impact market sentiment and trends in the days ahead.