Economic updates regarding inflation that was already elevated due to President Donald Trump’s unpredictable tariff disputes with much of the world.
Economists, investors, and policymakers are closely monitoring these economic indicators to better understand the ongoing impact that the war and tariffs are having on prices, housing, and the labor market.
Here’s a look at some of the key reports coming in the week ahead.
<a s housing market is not in a good place
The housing sector remains burdened by high prices and climbing interest rates. Home sales have stagnated, and the upcoming update on sales of previously occupied homes is expected to mirror this trend. The National Association of Realtors is scheduled to release its October report on existing home sales this Thursday, with economists anticipating figures largely unchanged from September.
Home sales have hovered near a 4-million annual pace since 2023, well below the historical norm of approximately 5.2 million. Home prices have climbed on an annual basis for 39 consecutive months, and the average rate for a 30-year fixed mortgage remains near its highest point in nearly three years. Mortgage rates are likely to stay elevated as the Federal Reserve considers another hike to its benchmark interest rate at its December meeting in an attempt to tame stubbornly high inflation.
Unemployment update after big gains in October
The U.S. will release its weekly update on unemployment claims on Thursday, which serves as a proxy for layoffs. Economists track this weekly data as a potential indicator of the job market’s trajectory. The most recent update shows that claims remain at historically low levels.
The broader labor market remains resilient. U.S. employers added 165,000 new jobs in October. While the job market has shown remarkable durability, it has also begun to exhibit signs of strain.
Wage growth has been sluggish and has failed to keep pace with inflation, intensifying the financial burden on households. Furthermore, while layoffs have remained largely contained, finding new employment has become increasingly difficult for those who are let go.
Corporate earnings continue to roll out
A variety of notable corporate earnings reports are expected next week, which should provide further insight into the state of artificial intelligence, data centers, and the entertainment industry.
Following a difficult week for the AI sector, CoreWeave is set to report quarterly earnings on Tuesday. Some analysts view the data center company as more vulnerable to rising borrowing costs, and its shares have fallen nearly 20% over the past week. Cisco and Applied Materials are scheduled to report their results on Thursday.
SkyDance will post its earnings on Monday, marking its first report since Paramount studios finalized an $81 billion takeover of Warner Bros. Discovery, a move that created a new Hollywood giant.
