The Fed may postpone interest rate cuts for a longer period of time, as suggested by Friday's massive employment report.

European central bank

When the ECB meets on Thursday, it is expected that it will keep interest rates unchanged until it starts a cycle of rate cuts in June.

Markets anticipate an almost 100% possibility of a 25 basis-point decrease in June, so their remarks, along with President Christine Lagarde's, will be carefully monitored for approval.

June has been specifically mentioned by a number of officials as the start date for action, and the most recent statistics revealed that the Eurozone unexpectedly dropped to 2.4% in March, solidifying expectations for a rate decrease.

Inflation data

On Wednesday, the United States will disclose its consumer price inflation data for March. Economists predict that core inflation, which excludes the cost of gasoline and food, will decrease to 3.7% year over year from 3.8% in February.

On Thursday, producer pricing data is anticipated to indicate a more gradual increase.

The inflation statistic follows figures released on Friday that revealed the U.S. economy gained significantly more jobs last month than anticipated as wages increased steadily, suggesting that inflation may be reluctant to drop in pace.

Earnings season begins

Major banks' quarterly reports will officially begin the earnings season on Friday.

Since the stock market has risen to all-time highs, investors are depending on strong corporate profit this year to underpin growing values.

The S&P 500 has gained almost 9% so far this year, coming off its best first-quarter showing since 2019. However, the bar may be rising for equities to continue gaining at that rate, putting more pressure on businesses to produce impressive outcomes.

Investors will pay attention to what businesses have to say about inflation and the economy.

On Friday, JPMorgan, Citigroup, and Wells Fargo will all release their earnings. Among the other well-known companies scheduled to present quarterly reports this week are BlackRock and Delta Air Lines.

Federal Reserve minutes

The Federal Reserve will on Wednesday make public the minutes of its March meeting, during which members maintained their expectation of three rate decreases this year, but with less vigour than they had at the close of the previous year.

Money markets are currently pricing in two rate cuts this year, down from three after Friday's employment report.

John Williams, the president of the New York Fed, will also speak to market observers on Thursday.

(Sources: investing.com, reuters.com)