What Is an Economic Calendar?
An economic calendar lists scheduled macro releases and central bank events. These reports can change expectations for interest rates, inflation, and growth—so markets often reprice fast.
The Releases That Matter Most
- CPI / Inflation: impacts rate expectations and valuation multiples.
- Jobs (NFP, unemployment): signals growth strength and wage pressure.
- FOMC: rate decisions + press conference guidance.
- PMI / ISM: “are we expanding or contracting?”
- GDP: slower-moving, but still important for big trend shifts.
How to Interpret a Release
- Compare to expectations: markets react to surprise, not the number alone.
- Look at revisions: prior data is often revised and can matter as much as today’s print.
- Watch rates: yields usually tell you the “macro truth” first.
- Separate noise from trend: one hot print isn’t always a regime change.
Common Trading Risks
- Spread widening: fills get worse right before and after the print.
- Fakeouts: initial spike reverses once liquidity returns.
- Correlation spikes: “everything moves together” during macro shocks.
FAQ
Does macro matter for small caps too?
Yes. Macro can hit liquidity and risk appetite, which often matters more for small caps than fundamentals in the short run.