Here all of the details and economic reports getting released this week.
Big things to watch out for this week:
Wednesday 2pm Eastern: FOMC Minutes
Thursday 1 Hour before market open: GDP Estimate
Friday 1 Hour before market open: PCE Prices
If interest rates go up... how does this affect the market?
The relationship between interest rates and the stock market is complex and multifaceted. In general, when interest rates increase, the stock market tends to react in the following ways:
Lower stock prices: One of the primary reasons for this is that higher interest rates make it more expensive for companies to borrow money, which can reduce their profits and overall value. As a result, investors may become less willing to buy stocks or may sell existing stocks, causing prices to decline.
Decreased demand for stocks: When interest rates are high, investors may prefer to invest their money in fixed-income securities, such as bonds, which offer a guaranteed rate of return. This can reduce demand for stocks and lead to lower stock prices.
Stronger currency: Higher interest rates can lead to an increase in the value of a country's currency, which can make exports more expensive and reduce the profits of companies that rely on international trade.
Better returns for savers: Higher interest rates can benefit savers and investors who are looking to earn a higher rate of return on their savings. This can lead to more money flowing into savings accounts and other fixed-income investments, rather than the stock market.
It's worth noting that the impact of interest rate changes on the stock market can vary depending on a variety of factors, including the overall state of the economy, the specific industry or sector being examined, and the size and stability of individual companies. Additionally, the stock market is influenced by many other factors besides interest rates, such as geopolitical events, market sentiment, and company earnings reports, among others.
More details in video form about the potential market pull back:
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The stock market is dropping and now is the best time to start investing in the stock market! Watch me trade live in the stock market. My learn plan profit group gets to watch me trade live every day, and get a feel of what they experience daily. -Ricky Gutierrez
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