Week Ahead: Stocks, Dollar, Gold To Waver As Investors Seek Focus After Soft NFP – Investing.com

Week Ahead: Stocks, Dollar, Gold To Waver As Investors Seek Focus After Soft NFP – Investing.com

Will investors in the wake of disappointing , even as stocks hit or hover near all-time highs, or will they now drive equities even higher, focusing on the prospect of strong corporate profits going forward?

While we expect stocks to fluctuate in the short-term as markets await another clear catalyst, after the dust settles, we predict investor focus will fix neither on frothy valuations nor corporate results.

Our view remains ahead of Friday's NFP release—it's more likely than not that investors will be bullish specifically because of the weak jobs report. We've often noted that stocks sell off despite improving economic data, on fears of a more rapid end to stimulus, whereas poor figures were greeted with rallies, on the view the negative numbers will help prolong government and central bank support.