Broader stock indexes have wavered this week as concerns about runaway inflation dwindled and Fed officials signaled that discussions about adjusting the pace of asset purchases may commence in the near future. Investors are closely monitoring indicators of economic activity to try to understand when monetary stimulus could begin to be scaled back.
“We’re trying to understand if there is this bigger-than-life moment for the U.S. economy. It will question what the Fed should do,” said Ludovic Subran, chief economist at Allianz. “The equity market has been in a bit of a wait-and see-mode, waiting for this confirmation.”