2 Key Market Events That Could Move Stocks This Month
June is an exciting month for the markets. Here's what could happen.
2 Key Market Events That Could Move Stocks This Month
Overview
This month has already been chock-full of important economic and market events. The Space Exploration Technologies (NASDAQ: SPCX) initial public offering (IPO) was the largest ever, but the markets didn't have a significant response to it, at least not yet. The May inflation report just came out with the highest rate of inflation since April 2023, and that didn't move the markets, either. But the latest jobs report two weeks ago, showing strong jobs data, did send the S&P 500 down. That seems counterintuitive, but what the market was really responding to was the fear that a healthy jobs report would push the Federal Reserve to keep interest rates high.
This week could bring bigger swings, though. The next big event is the Federal Reserve's open market committee meeting this week. If the jobs report swayed the market, the Federal Reserve meeting could move it even more. At the end of the week, several exchange-trade funds (ETFs) could start to include SpaceX, which could also get the market moving.
Details
The Fed sets monetary policy, and it has a mandate to maximize employment while keeping prices steady. As inflation accelerates along with robust employment, it reduces the likelihood the central bank will lower interest rates. High interest rates help stem inflation by making it harder for many people to borrow and spend, which tends to limit the amount of money flowing into the economy. That is meant to lower prices and inflation.
Source
Originally published at www.fool.com.
