In this story
The stock market has yet to gain traction in 2025. With Donald Trump’s inauguration looming on January 20, all eyes are on how investors will react this week, as it carries its own significance with key earnings reports and the release of long-awaited inflation data. , which is expected to remain high. Moreover, Recent jobs data was better than expectedWhich indicates that the Fed may postpone its decision to cut interest rates.
These reports will provide the foundation for a second Trump era, as the latest inflation and employment numbers will give insight into the economic challenges and opportunities his administration will face.
In this context, let’s delve into what this week has in store.
Banking giants will continue to announce their profits
This week, the pace accelerates in the second half with a series of bank earnings reports. On Wednesday, stocks of heavyweight banks such as JPMorgan Chase (JBM-1.28%), BlackRock (Black-2.99%), Citigroup (C-2.48%Others are scheduled to announce their earnings before the opening bell. Thursday will be followed by reports from M&T Bank Corporation (mtb-1.95%), Morgan Stanley (Ms-3.14%), and other financial giants.
In addition, Taiwan Semiconductor Manufacturing Company (TSM+0.60%) and United Health Group (United Nations-1.04%) will reveal their financial performance on the same day, providing key insights into the health insurance and chip sectors.
Inflation data is due this week
Key inflation data will be released this week, providing important information on the state of the US economy. On Tuesday, the Producer Price Index (PPI) and core PPI data will be released. The Producer Price Index measures inflation at the wholesale level and provides an early indicator of potential price pressures in the broader economy.
In addition, the Fed will release its Beige Book, a detailed compilation of economic conditions from the 12 Federal Reserve Districts. This report often provides valuable evidence regarding the Fed’s position on inflation, employment trends, and broader economic growth.
On Wednesday, the Consumer Price Index (CPI) and core CPI data will be published, highlighting inflationary trends and costs of living. These reports are closely watched by economists and investors because they help measure the effectiveness of monetary policy.
On Thursday, initial unemployment claims data will be released, providing a glimpse into the health of the labor market. In addition, the import price index and US retail sales figures will also be published. The Import Price Index will highlight changes in the cost of goods imported into the United States, while retail sales data will provide a look at consumer spending patterns, the main driver of economic growth.