4 Economic Events That Could Affect Your Portfolio This Week, March 11 – 15, 2024 – TipRanks.com

Markets End Volatile Week on a Down Note

Markets ended a volatile week on a down note, as semiconductor stocks reversed course and jobs data came in mixed. All four major benchmarks closed the week in the red, reversing two weeks of increases.

Investor optimism dissipated as Nvidia (NVDA) stock fell on profit-taking, weighing on investor sentiment, and February’s stronger-than-expected payroll growth employment report was another indication that interest rates will not be decreased soon. Markets brushed aside the fact that the unemployment rate ticked higher and wage growth cooled down, as a surge in hiring pointed at a still tight job market.

Overall, the jobs data supported the Federal Reserve’s “on hold” stance, keeping the odds of a June rate cut unchanged. This week, the markets will be focusing on the economic reports concerning the second part of the central bank’s dual mandate, price stability.

Four Economic Events

Here are four economic events that could affect your portfolio this week. For a full listing of all upcoming economic events, check out the TipRanks Economic Calendar.

February’s CPI and CPI ex. Food and Energy (Core CPI) – Tuesday, 03/12

The CPI report is one of the two key indicators used to measure inflation (the second one is the Personal Consumption Expenditures, or PCE). Policymakers, businesses, and consumers closely watch the CPI report, as it reflects the price trends in the economy, shapes consumer spending and business outlooks, and directly affects the Federal Reserve’s policy rate decisions.

February’s Producer Price Index (PPI) – Thursday, 03/14

This report reflects input prices for producers and manufacturers. Since PPI measures the costs of producing consumer goods – directly affecting retail pricing – PPI is seen as a good pre-indicator of inflationary pressures. This makes it a leading indicator for the following month’s CPI. Thus, the PPI directly impacts the overall inflation outlook among policymakers.

February’s Retail Sales – Thursday, 03/14

This report provides information on the amount of money consumers are spending on various durable and non-durable goods. It helps to gauge the economy’s health and consumer spending habits, as well as the level of the buy-side inflation pressures.

March’s Michigan Consumer Sentiment Index and UoM 5-year Consumer Inflation Expectations (preliminary readings) – Friday, 03/15

These reports portray the results of a monthly survey of consumer confidence levels and consumers’ views of long-term inflation in the United States. The level of confidence affects consumer spending, which contributes about 70% of the U.S. GDP. The inflation expectations index is used as a component of the Fed’s Index of Inflation Expectations calculations.

For more exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.

SDGs, Targets, and Indicators

1. SDG 8: Decent Work and Economic Growth

   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
   • Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age, and persons with disabilities.

   The article discusses the jobs data and the tight job market, indicating the relevance of SDG 8. The focus on employment and wage growth aligns with Target 8.5, which aims to achieve full and productive employment and decent work for all. The indicator mentioned in the article, average hourly earnings, can be used to measure progress towards this target.

2. SDG 10: Reduced Inequalities

   • Target 10.4: Adopt policies, especially fiscal, wage, and social protection policies, and progressively achieve greater equality.
   • Indicator 10.4.1: Labour share of GDP, comprising wages and social protection transfers.

   The discussion of wage growth and the impact on consumer spending suggests a connection to SDG 10. Target 10.4 focuses on adopting policies to achieve greater equality, including wage policies. The indicator mentioned in the article, labor share of GDP, can be used to measure progress towards this target.

3. SDG 12: Responsible Consumption and Production

   • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
   • Indicator 12.2.1: Material footprint, material footprint per capita, and material footprint per GDP.

   The article does not directly discuss responsible consumption and production, but the mention of retail sales and consumer spending habits relates to SDG 12. Target 12.2 aims to achieve sustainable management and efficient use of natural resources, including through sustainable consumption and production patterns. The indicator mentioned in the article, material footprint per GDP, can be used to measure progress towards this target.

4. SDG 16: Peace, Justice, and Strong Institutions

   • Target 16.6: Develop effective, accountable, and transparent institutions at all levels.
   • Indicator 16.6.1: Primary government expenditures as a proportion of original approved budget, by sector (or by budget codes or similar).

   The article does not directly discuss peace, justice, and strong institutions, but the mention of the Federal Reserve’s policy decisions relates to SDG 16. Target 16.6 focuses on developing effective, accountable, and transparent institutions. The indicator mentioned in the article, primary government expenditures as a proportion of original approved budget, can be used to measure progress towards this target.

Table: SDGs, Targets, and Indicators

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