Monday's Market Minute: Off The Low, But Does The Market Know Where To Go

As we begin what’s expected to be another big week, investors continue to express concerns related to the spread of the coronavirus and the impact it could have on economic conditions.

First, an update: with over 80K infected and 3K deaths, the total cases here in the U.S. are 88 infections and two deaths. This has sparked comments from central bankers, and traders are on the lookout for signs of a rate cut this week. Goldman Sachs Group Inc GS said they expect to see a 50 bps cut in March.

Federal Reserve Chair Jerome Powell on Friday said while the fundamentals of the U.S. economy remain strong, the virus remains a risk to economic activity and the Fed is closely monitoring developments. The unease sent rates in the U.S. to record lows, with the TNX to 1.05% and the TYX to 1.62%. In addition to coronavirus concerns this week, we have some closely watched economic data and Fed speakers to keep an eye on.

The focus will mostly be on the manufacturing and jobs data this week. We have ISM Manufacturing today at 10am ET to begin the week, PMI Services Index on Wednesday, and Non-Farm Payrolls due out Friday. Don’t forget to keep an eye on commodities, as Gold is spiking back above 1600 and Crude Oil is sinking to levels we haven’t seen since the end of 2018. Stay tuned to the TD Ameritrade Network for coverage of all the breaking news and the market reaction!

Image by Alexander Kliem from Pixabay