Market Awaits Consumer Confidence Report

We begin the final pre-market session for this trading week in the green, based partly on fears being somewhat assuaged that the federal government was headed for a shutdown, and partly on the recognition that key equities are currently on sale with the S&P 500 broaching correction levels. The Dow is up +278 points, +0.68%, the S&P 500 +59, +1.07%, the Nasdaq +278, +1.44% and the small-cap Russell 2000 +23 points, +1.15%.It would take a huge 180 in market sentiment to get back to the green for the week on these indexes. A daily dollop of new, more austere tariffs directed at our biggest global trading partners is chief among these concerns. The “Trump bump” the market saw from last November through the first month of the year has completely dissipated, as the market now prices in a tariff environment no longer as “just a bargaining tool.”Meanwhile, Chinese stocks are at their highs from the start of 2025, with the CSI 300 +6% year to date. The FTSE, which tracks the European equities markets, is +3.5% from the beginning of the year, though down notably from its all-time high in the early days of this month. Gold prices have surged above $3000 for the first time ever — a clear hedge against the Wall of Worry currently occupying the U.S. market indexes.What to Expect from the Stock Market TodayWith Q4 earnings season now complete but the end of calendar Q1 still a couple weeks away, we’re quieter on the normal cycle of events which may influence the markets. No major economic reports are hitting the tape until after today’s open, when the latest (preliminary) University of Michigan survey on Consumer Sentiment comes out at 10am ET. Expectations there are for a further downtick from February, which was already the lowest print of the last 12 months.The big question, based on the past few weeks of trading we’ve seen: Pre-market futures are up — but so what? Session after session we’ve seen these indexes erode during normal trading hours, based on various unexpected events causing market participants to question what’s going on in real time. Recall, we’re only three weeks or so off all-time market highs. This is the fastest fall to correction territory since the Covid pandemic.Looking Ahead to Next WeekNext week brings us plenty of scheduled reports which will help inform the Fed about the state of the economy — as well as a new Fed meeting on Tuesday and Wednesday. No one expects a move on the current 4.25-4.50% level on the Fed funds rate; this will be the third meeting in a row with no move. Projections are for the next 25 bps cut in May or June of this year.Economic metrics will abound next week: Retail Sales, Empire State/Philly Fed manufacturing, Housing Starts/Building Permits and Leading Economic Indicators, to name a few. Yet it will be tough to predict where market sentiment will shift — if it does shift — from its current operations under a dark cloud. Pay attention to the Fed’s press release and press conference Wednesday afternoon — what Fed Chair Jerome Powell has to say about the current economic environment will be closely listened to.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks