Last week, the three major U.S. stock indexes closed lower. On a weekly basis, the Dow Jones Industrial Average (DJIA) fell by 903.33 points, or 2.2%, to close at 38,904.04 points; the S&P 500 index dropped by 50.01 points, or 0.9%, to close at 5,204.34 points; and the NASDAQ index declined by 130.94 points, or 0.8%, to close at 16,248.52 points.

Key Takeaways:
The market is uncertain at the start of the second quarter
Concerns about rate cuts are intensifying

Markets got off to a shaky start to the week and the second quarter, as strong economic readings raised concerns around if and when the Fed will be able to start cutting rates.The week finished with the latest jobs report, which showed that the labor market remains in very good shape. Job growth was better than expected, unemployment remains low, and wage gains are healthy but moderating, helping the inflation outlook.

Despite growing nervousness around the timing and magnitude of Fed rate cuts this year, markets closed out a challenging week on an up note, treating the strong jobs report as an indication that economic growth, and thus corporate earnings growth, remains on a path higher, which should offer broader support to the bull market.

This Wednesday's consumer price index (CPI) report will be the catalyst for markets to adjust and react to expectations for the timing and magnitude of rate cuts this year. Expectations are for core CPI to have ticked down to 3.7% last month (from 3.8% in February).

Friday's mostly sunny U.S. jobs report is in the books but may get eclipsed by this week's critical inflation data. The March Consumer Price Index (CPI) Wednesday and Producer Price Index (PPI) Thursday could help determine whether the Federal Reserve cuts rates by mid-year or keeps its foot firmly on the brakes.

AiF believes that the market is not afraid of no rate cuts, or even rate hikes. The market fears uncertainty. As for whether there will be rate cuts this year, the Federal Reserve has made its stance clear, read more:
AiF insight | Market Panic Selling, Fed Makes Clear Statement 
AiF insight | No Rate Cut This Year? Stock Market Crash Ahead?
AiF insight | Concerns About Rates Cutting

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