Home Business News US stocks see risks after rebound

The US stock market could continue its rebound if conditions remain favorable although traders could become more cautious ahead of new economic data releases.

This rebound offered a welcome relief after two months of price corrections. Markets could continue to focus on the direction of monetary policy.

While the market has benefited from a softer tone from the Federal Reserve governors lately, traders could monitor inflation data as well as the release of the Federal Reserve’s meeting minutes, both of which could affect expectations.

At the same time, the rising geopolitical tensions in the Middle East could continue to fuel investor’s concerns and could make safe haven assets more attractive, directing inflows toward bonds and gold.

Increasing tensions could have a negative impact on stocks as traders monitor any flare-up.

The market could also face strong volatility in the coming days as traders brace for the beginning of the release of company earnings. Several banks and other major companies are expected to kick off earnings season starting Friday.

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