We will be looking forward into April and the updates on some of the studies underway for drugs with a therapeutic response to COVID-19, like Azithromycin and Hydroxycloroquine. We stand hopeful and optimistic.
On the economic news front, Initial Jobless Claims will be the focal point again when it releases on Thursday, April 9. Unfortunately, it’s likely to be another whopping, record-setting number.
Inflation reports will also make headlines, as wholesale inflation for March will be reported via the Producer Price Index on Thursday, April 9, while the Consumer Price Index follows Friday. We should expect inflation numbers to move lower in these reports and moving forward. This would only make sense because starting in March, which these reports measure, and beyond there really has not been any pricing pressure that would lead to inflation. Inflation happens when you have too many dollars chasing too few goods, causing prices to rise. We are not seeing that, as demand has fallen due to the coronavirus. Expect inflation to turn negative month over month, if not in these reports, then soon.
In addition, there will be a 10-year Note and 30-year Bond Auction, which can influence the markets and tell us where traders believe yields will go. It’s also likely that the rampant volatility we have seen in the markets will continue, depending on the headlines regarding the pandemic.