🎢A relief comeback💎

It was a tough trading day as we swung up to down and backed up again. Eventually, the S&P 500 snapped off a five-day losing trend as investors warmed to the latest economic data. The S & P 500 is working on consolidating at the 3900 level. 

Investors appeared to have some reservoir of trust and confidence that the Fed is almost in its final sprint of a rate hike, but caution is still advisable. 

🎯Initial Jobless Claims sparked relief, and next is PPI day!🎲

The jobless claim stood at 230,000, higher than the prior result. It is good news because it portrays that the labour market is cooling and possibly helping inflation to tilt downward. 

Beyond this data, we will receive the Producer Price Index today. If we see companies facing rising costs at a much slower rate, they can give a breather to raise prices slowly, which can help provide fertile ground for inflation to decline. And on that note, it keeps alive on Fed’s pausing rate hike narrative again. 

🧮Threading on a fine line🔑

Any piece of news now appears to have both sides of the analogy. It’s similar to a contrarian play in most situations. Ultimately, investors hope to see signs of economic growth waning but at a moderate pace such that it can avoid recession or a soft landing. The bond market is signalling such a situation as a tall task as the yield curve had inverted long ago. 

Hence, the question remains whether we can arrive at a soft landing pad and ride out the inflation decline to prepare for a more normalized macro environment. 

📮What’s on the menu today?📖

At 9.30 pm, we will have the PPI for MoM data which we expect a moderate growth of 0.2%, similar to the prior period. 

At 11 pm, we can expect the Michigan Consumer Sentiment, and we can expect an uptick to 56.9 from  56.8.

It is 9 December, Friday, at 8.55 am in Singapore and 7.55 pm in New York. It is the week’s final trading day, and we wish everyone a safe and prosperous week ahead!