Stocks are set to wind down the worst first half since 1970 in the week ahead, but the market could bounce as big investors adjust their asset allocation ahead of quarter end. The S&P 500 was up more than 6.4% in the past week, and JPMorgan analysts say there’s a case to be made for an even bigger jump by the end of the quarter Thursday. Strategists caution, however, that any rally could be short-lived, since they expect earnings season to be a rocky time for the market once it gets underway in mid-July.
There are some reports of note on the economic calendar, including Thursday’s May personal consumption expenditure data, which includes key inflation data watched closely by the Federal Reserve.
"My guess is the market is trying to rally right now with bond yields coming down, and equities putting in a few decent sessions," said one CIO. "It could probably rally into the July 4th holiday, and the real show starts with the earnings season." |
