5 Important Developments To Follow During The Next Week

5 important developments to follow during the next week have been compiled. Especially the fluctuations in the cryptocurrency market will be followed with great importance this week as well. Here are those developments ...

1.Rotation in the Market

With a few days to the end of the month, the technology-heavy Nasdaq Composite and S&P 500 have lost 3.5% and 0.6% so far this month. The Dow, on the other hand, has gained 1% so far this month as inflation concerns have subsided to growth stocks. Investors are afraid of concerns about the future of FED policy in the face of increasing inflation risks. FED minutes last week revealed that some politicians are ready to talk about starting withdrawing the incentives by reducing their bond purchases. Analysts predict that the rotation from growth stocks to value stocks will continue as the economic recovery strengthens.

2.Bitcoin Dropped Hard

The leading cryptocurrency rapidly declined after China announced that it would impose restrictions on Bitcoin mining and business activities. Earlier in the week, China's industry body tightened bans on banks and payment companies providing crypto-related services. In addition, on Thursday, the US Treasury Department called for a new regulation requiring the reporting of major cryptocurrency transactions to the Tax Office. The FED also drew attention to the risks posed by cryptocurrencies to financial stability. Bitcoin, which saw an all-time high near $ 65,000 in mid-April, fell sharply since then, but partially formed the ground after falling to around $ 30,000 on Wednesday.

3.Earnings Reports

While the earnings period continues to calm, some names will submit reports and the most interesting will be Best Buy, Costco and Nordstrom. Other companies to report include NVIDIA (NASDAQ: NVDA), Salesforce.com, and Dell Technologies, Toll Brothers, Cracker Barrel, Pershing Square Holdings, Urban Outfitters, Abercrombie and Fitch, Dick's Sporting Goods, American Eagle Outfitters, Ulta Beauty, VMWare, Autodesk, Dollar General, Dollar Tree, and Medtronic.

4.Economic Data

The most important data to be followed in the coming week will be the personal income and expenditure figures on Friday, including the personal consumption expenditures index. Core spending, excluding food and energy, is the FED's preferred inflation metric for the 2% average target. It increased by 1.8% in the 12 months up to March. The data can test the FED's determination to keep asset purchases at the current pace in the face of recovery in the economy and inflation. Consumer confidence, house prices and new home sales data will be released on Tuesday, while durable goods orders and first unemployment applications will be announced on Thursday.

5.FED Talks Will Be Held

FED Administrator Lael Brainard will talk about digital currencies at the Consensus, held virtually by the CoinDesk Conference on Monday. Due to the recent fluctuations in the cryptocurrency market, this statement will be followed carefully. In addition, Atlanta FED President Raphael Bostic and Kansas City FED Chairman Esther George will also speak on Monday. Deputy Chairman of the FED Randal Quarles will give a statement in front of the Senate Banking Committee on the regulation and supervision of the financial system by the FED. Vice Chairman Randal Quarles will testify before the Senate Banking Committee on Tuesday about the Fed's regulation and supervision of the financial system.   Source: Investing.com