Stock Market

What will shake the market: consumer sentiment and electric car shows

The US stock market tried to rise on Thursday, but was unable to sustain gains, closing lower on the back of fresh economic data.

The number of initial jobless claims last week was lower than expected, which was another proof that the situation in the labor market remains tight. Retail sales were also slightly better than expected. On Friday, the University of Michigan Consumer Sentiment Index for September is expected to show an improvement in the outlook.

All this is happening against the backdrop of slightly higher than expected inflation in the US in August, which may give the Federal Reserve reason to continue to sharply tighten monetary policy. Observers of the Fed’s moves expect the central bank to raise its base rate by another 0.75 percentage points, as it did in June and July, but some are even considering raising it by 100 basis points. Fed officials have said in recent weeks that it is important to bring inflation down to the 2% target and that they will do everything necessary to achieve this goal.

One bright spot in Thursday’s news: US President Joe Biden’s administration struck a tentative agreement between railroad operators and union workers, preventing a strike that could destroy a transportation network that carries a third of US freight around the country. Union members must now vote on this agreement.

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Here are 3 events that could affect the market on Friday:

Consumer Sentiment from the University of Michigan

The University of Michigan Consumer Sentiment Index for September is due out Friday at 10:00 AM ET (14:00 GMT). The current figure is expected to be 60, up from 58.2 the previous time.

Detroit Auto Show

The Detroit Auto Show will open its doors to the public on Saturday, but there is already a plethora of electric vehicles from major automakers including Stellantis NV (NYSE:STLA), Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) in the press. . US President Joe Joe Biden, attending the show’s opening, announced an initial $900 million investment in electric vehicle charging stations as part of a nationwide program.

Movie weekend

Few new films have been released lately, but Sony Group (TYO:6758) Corp (NYSE:SONY)’s highly anticipated release of The King’s Woman will debut in U.S. theaters on Friday, and according to BoxOfficeMojo, weekend box office returns will come at the expense of adolescent population.

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