The stock market rallied strongly last week after three weeks of selling pressure. There was no significant economic news released so the increased buying may simply have been in reaction to the new low stock prices.
Will this rally continue or quickly sputter out like other recent market rallies? I believe July will be a pivotal month with important economic data and policy decisions either jumpstarting a rise in the stock market or continuing to push the market lower. Important upcoming economic events I’m watching include:
- GDP (Gross Domestic Product) Numbers: Revised 1st Quarter and Preliminary 2nd Quarter.
- Jobs Report for June (plus revised numbers for April and May) & quarterly Corporate Earnings Season kick off.
- Inflation Reports & the next Federal Reserve meeting.
In the past few months there has been a unified awareness of the current issues slowing down the economy. Corporations, consumers, the Fed, and policy makers have all been working on substantial changes to adjust to the challenges and fix the problems, but are they working? Now I’m looking toward July’s economic and corporate reports to see if they are beginning to reflect an easing of problems and a subsequent market rally, or a worsening of economic conditions and continued bear market slump.
Photo by: Aditya Vyas on Unsplash
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