Monday Market Must-Knows: May, 9 2022

How does the Fed respond to unemployment?

This week, there are four important announcements related to jobs. 

• JOLTS job openings on Tuesday at 10:00 AM ET
• ADP non-farm employment change on Wednesday at 8:15 AM ET
• Unemployment claims on Thursday at 8:30 AM ET
• Unemployment Rate on Friday at 8:30 AM ET

The most significant announcement is the unemployment rate, previously at 3.4%, but has now risen to 3.6%, which could affect the Fed's policy decisions. While this is still lower than the historical average of 5.7%, any further shift in the unemployment rate may impact the Fed's decision to raise, lower, or keep interest rates the same. Inflation and GDP numbers are also important factors in the Fed's decision-making process.

The upcoming trading week is anticipated to be a busy one with several key events to watch out for. First up is the earnings season, which is starting to wind down, but there are still 36 companies reporting earnings this week, with Constellation Brands and ConAgra Brands being the notable ones.

Next up is the central banks and rates, with the Reserve Bank of Australia expected to announce that they will stop raising rates, while New Zealand is anticipated to increase.

Lastly, there's a big political event happening this week, with former President Donald Trump turning himself in to law enforcement officials in New York. While this isn’t in itself a market mover, there may be a lot of associated events which could create volatility in the markets.

All these events will impact the market, and it's important to stay informed and take caution while making trading decisions.

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