© Reuters.
By Liz Moyer
Investing.com — Stocks rose on Thursday as investors tried to get past fears about the banking sector and looked forward to the Federal Reserve’s next move on interest rates.
One key data report the Fed will be looking at is tomorrow’s inflation numbers for February. Analysts expect the growth in spending and consumption slowed in the period, which happened before the bank turmoil in March disrupted sentiment even more.
Futures traders are about evenly split on the . About half of them are betting on a rate hike of a quarter of a percentage point, while the other half believe the Fed will pause when it next meets in May.
By then, most of the will have run through first-quarter earnings reports, with investors listening to executives to see if their forecasts for the year have shifted any with the prospect of the Fed getting closer to the end of its rate hiking.
Here are three things that could affect markets tomorrow:
1. Core PCE
The Fed’s preferred inflation reading is the personal consumption expenditure index, which is expected out at 8:30 ET tomorrow (12:30 GMT). Analysts expect the , which strips out energy and food prices, will rise 0.4% from the prior month and 4.7% for the through February.
2. Spending and income
Another batch of numbers focuses on spending and income, also due out at 8:30 ET. is expected to rise 0.2% for the month, and is expected to rise 0.3%. Both would be at a slower pace than the previous month.
3. Michigan sentiment
The latest University of Michigan reading is due out at 10:00 ET. Analysts expect the March reading to be 63.2, a tiny dip from the prior reading.
