This looks to be an interesting week, and we’re not simply referring to the eclipse.

All eyes will be on Wednesday’s CPI report to see how well the Fed is fighting inflation.  Will we see a trend, or might any abnormal reading be considered “bumpy” as Chairman Powell recently explained?  This report might be of even greater interest than usual after Friday’s strong non-farm payroll numbers.  The economy continues to show signs of greater strength than many seem to recognize. 

We’ll also learn more about what the members of the Fed were thinking at the last FOMC meeting, as minutes from the 3/20 meeting are to be released Wednesday.  Subsequent to the last meeting, many Fed leaders have recently shared their outlooks and predictions.  Therefore, it is somewhat unlikely that anything overly earth shattering will come from the minutes.  Nonetheless, every line will likely be studied and parsed for any additional clues.  Thursday brings PPI.  Will CPI and PPI be pointing in the same direction, and will there be differences in magnitude?  Time will tell.   

In the equity markets, large continues to outperform small and mid-sized companies, growth over value, and domestic over international.  The market-cap weighted S&P 500 continues to outperform the more esoteric equal-weighted index both YTD and MTD.   

With earnings season soon upon us, investors can soon focus on fundamentals, once again.  That is welcome news.  Earnings season begins Friday as some large banks report Q1 results.  Not only is this significant due to any glimpse their respective numbers might provide, banks also offer a broader measure as to the health of the overall economy.  It will be interesting to see their stats and even more telling to learn of their forecasts into the future. 

Artificial Intelligence continues to drive the Tech sector and in many regards the positive outlook for the entire equity market.  With the potential of greater efficiencies and productivity, AI is likely to manifest itself in increasing earnings.  The number of AI conferences being held demonstrates the interest and potential promise of artificial intelligence.