Jun 28, 2021
The S&P 500 moved up to set a new all-time high on Friday after weaker-than-expected inflation data relieved the fear of inflation. The core PCE price index grew at 0.5% month-over-month, a tenth slower than expected despite signs of rapidly rising prices elsewhere in the economy. The bad news is that, on a year-over-year basis, core consumer-level inflation accelerated to 3.4% and shows no sign of slowing.
This week the market will be focused on the labor data. There Is a raft of labor data due out throughout the week with the most important on Friday. Friday is the non-farm payrolls report, a report that has left much for the market to desire in the past two readings. Another month of weak job creation may not be enough to derail the rally but it will add to the wall of worry. A much-weaker than expected report could derail the rally.