Equity markets rebounded on Thursday on hopes that labor data would be a Cinderella story. The data can not be too hot or cold or may raise fears of higher interest rates for longer or looming recession, depending on which way the wind blows. In either case, the outcome for the S&P 500 will be tepid earnings growth in 2024. The S&P 500 advanced 0.75% at the session's peak and remains within a tight range at critical resistance.

Next week will be a hot one for traders. The economic calendar is filled with potentially market-moving events running from the Retail Sales figure through inflation and an FOMC policy announcement. What makes next week different from others is that the PPI and CPI will come out ahead of the FOMC decision and could drastically alter the outcome. The data is expected to cool from the previous month; the question is by how much. Enough to put the committed on track to cut rates in early 2024 or enough to cause concern that inflation is falling too fast?