Last week stocks were on a roller coaster. There was a lot of market volatility. Stock markers around the globe reacted heavily to the breaking news around the world and economic data. Economic data is now showing a recovering US and a weakening Europe. This week there is a lot of economic data release scheduled like FED speakers, retail sales, inflation data, big chain store earnings. But what will move the stock market most is Russia and it’s response to the Ukraine Crisis. Last Friday, stocks soared when Interfax reported the Russia was ending it’s military exercise near Ukraine border. Dow and S&P 500 moved more than 1.1% and erased all the losses of the last week. This 1.1% move on Friday was the best one day in the last 5 months. So you can see how much importance the stock market is giving to the Russia news. This week again breaking news from Russia can move the markets big time.
“The talk is going to be what’s going on in Russia, what the Fed’s going to do and how quickly, and also you’re going to have a lot of noise about the (mid-term congressional) election, starting about now,” said Stuart Freeman, chief U.S. equity strategist at Wells Fargo Advisors. “I think those are going to be the volatility factors. However, I think the growth path of the U.S. is on pretty good footing. The jobs data and inflation data, particularly inflation data are the ones we’re going to see people watching.”