3 Economic Events That Could Affect Your Portfolio This Week, July 24-28, 2023 – TipRanks.com

Investors’ Focus on Federal Reserve and Earnings Reports

This week, investors will be closely monitoring the Federal Reserve’s interest rate policy meeting and a wave of earnings reports from Big Tech companies and other economically significant firms. The Federal Reserve is expected to raise its policy rate by 25 basis points, bringing it to 5.5%, the highest level in 22 years. While a rate hike is highly likely, there are uncertainties surrounding the Fed’s future moves. Many market participants anticipate that this rate increase will be the last one in the current economic cycle. Despite signs of slowing inflation, unemployment remains near record lows, and the first quarter’s GDP growth has been revised upwards significantly. The contradicting indicators suggest that the Fed may have successfully curbed inflation without pushing the economy into a recession. However, policymakers will be closely analyzing data in the coming weeks to validate this hypothesis.

Economic Events Affecting Portfolios This Week

Here are three economic events that could impact your portfolio this week:

1. S&P Global Manufacturing PMI and Services PMI (preliminary) – Monday, 7/24: These reports, released by S&P Global, are based on surveys conducted with business executives in private sector manufacturing and services companies. As manufacturing and services sectors play a significant role in the economy, these reports provide crucial insights into business conditions and overall economic conditions in the United States. The PMIs are widely used to anticipate changing economic trends and GDP growth.

2. Q2 2023 GDP Growth Annualized (preliminary estimate) – Thursday, 7/27: This report, released by the U.S. Bureau of Economic Analysis, offers an initial assessment of the health of the U.S. economy in the previous quarter. Following the significant upward revision of first-quarter figures, policymakers and investors are particularly interested in the details of the Q2 report. Economists predict a slight deceleration in growth compared to the 2% growth in Q1, estimating a 1.8% annualized increase.

3. June’s Core Personal Consumption Expenditures (Core PCE) – Friday, 7/28: Published by the U.S. Bureau of Economic Analysis, this report reflects the average monthly consumer spending, excluding volatile products like food and energy. The Federal Open Market Committee (FOMC) uses the annual Core PCE Price Index as a primary measure of inflation. A stronger-than-expected reading could indicate a potential shift towards a more hawkish stance in the Fed’s forward guidance.

For a comprehensive list of upcoming economic events, please refer to the TipRanks Economic Calendar.

SDGs, Targets, and Indicators in the Article

1. SDG 8: Decent Work and Economic Growth

   • Target 8.1: Sustain per capita economic growth
   • Indicator: GDP growth rate

2. SDG 12: Responsible Consumption and Production

   • Target 12.2: Achieve sustainable management and efficient use of natural resources
   • Indicator: Manufacturing and Services PMI

3. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning
   • Indicator: Core Personal Consumption Expenditures (Core PCE)

Analysis of the Article

The article discusses the upcoming Federal Reserve interest rate policy meeting and highlights three economic events that could affect investors’ portfolios. Based on the content of the article, the following SDGs, targets, and indicators can be identified:

1. SDG 8: Decent Work and Economic Growth

The article mentions the Federal Reserve’s interest rate policy meeting, which indicates a focus on economic growth and stability. This aligns with SDG 8, which aims to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

Target 8.1: Sustain per capita economic growth

The article mentions the GDP growth rate as an important indicator of the U.S. economy’s health. This aligns with Target 8.1, which focuses on sustaining per capita economic growth.

2. SDG 12: Responsible Consumption and Production

The article highlights the S&P Global Manufacturing PMI and Services PMI as important indicators of business conditions and overall economic conditions in the United States. This aligns with SDG 12, which aims to ensure sustainable consumption and production patterns.

Target 12.2: Achieve sustainable management and efficient use of natural resources

The Manufacturing and Services PMI can be used as an indicator to assess the efficient use of natural resources in the manufacturing and services sectors. This aligns with Target 12.2, which focuses on achieving sustainable management and efficient use of natural resources.

3. SDG 13: Climate Action

The article mentions the Core Personal Consumption Expenditures (Core PCE) as an indicator used by FOMC policymakers to gauge inflation. This aligns with SDG 13, which aims to take urgent action to combat climate change and its impacts.

Target 13.2: Integrate climate change measures into national policies, strategies, and planning

The Core PCE can be used as an indicator to assess consumer spending patterns, which can be influenced by climate change measures integrated into national policies. This aligns with Target 13.2, which focuses on integrating climate change measures into national policies, strategies, and planning.

Table: SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: tipranks.com

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