Purpose: This glossary explains the market data and finance terms most often seen in US stock, ETF, macro, and earnings commentary. Use it to identify what a data release measures, who publishes it, and why it can affect Nasdaq, technology stocks, interest rates, and risk appetite.
Inflation, Labor, and Growth Data
| Term | Full Name | What It Measures | Why Markets Care | Source |
|---|---|---|---|---|
| CPI | Consumer Price Index | Consumer-level price changes. | Hot CPI can lift rate expectations and pressure long-duration assets. | BLS CPI |
| Core PCE | Core Personal Consumption Expenditures Price Index | The Fed's preferred underlying inflation gauge. | Key for judging whether inflation is truly cooling. | BEA PCE |
| NFP | Nonfarm Payrolls | Monthly change in US nonfarm employment. | Important for growth, wage pressure, and Fed expectations. | BLS Employment |
| Initial Claims | Initial Unemployment Insurance Claims | Weekly first-time unemployment benefit claims. | A timely signal of layoff pressure. | DOL Claims |
| JOLTS | Job Openings and Labor Turnover Survey | Job openings, quits, hires, and separations. | Used to judge whether labor demand is cooling. | BLS JOLTS |
| GDP | Gross Domestic Product | Total economic output. | Affects earnings expectations and recession risk. | BEA GDP |
| Retail Sales | Retail Sales | Consumer spending at retail businesses. | US consumption is a major driver of growth and inflation. | Census |
| ISM PMI | Institute for Supply Management Purchasing Managers' Index | Survey-based business activity index. | A reading near 50 separates expansion from contraction. | ISM |
Rates, Liquidity, and Central Bank Terms
| Term | Meaning | Why It Matters | Source |
|---|---|---|---|
| Fed Funds Rate | The key US short-term policy rate anchor. | Directly affects the dollar, bonds, equity valuation, and discount rates. | Fed |
| FOMC | The Federal Open Market Committee, which sets US monetary policy. | Statements, projections, and press conferences can reprice all major assets. | FOMC |
| Dot Plot | FOMC participants' rate and macro projections. | Markets use it to infer the expected path of policy rates. | FOMC Materials |
| QE / QT | Quantitative easing or tightening through the Fed balance sheet. | Can influence liquidity, term premiums, and risk appetite. | Fed H.4.1 |
| 10Y Yield | The 10-year US Treasury yield. | A key input for equity valuation, mortgage rates, and global discount rates. | FRED DGS10 |
ETF, Portfolio, and Risk Terms
| Term | Meaning | Why It Matters |
|---|---|---|
| Expense Ratio | Annual fund operating cost as a percentage of assets. | Lower fees matter more over long holding periods. |
| Holdings | The securities owned by an ETF or fund. | The portfolio, not the ticker alone, determines exposure. |
| Top 10 Weight | The combined weight of the ten largest holdings. | Higher concentration means a few names can drive most returns and risks. |
| Premium / Discount | ETF market price above or below estimated net asset value. | Important for cross-border ETFs, illiquid funds, and stressed markets. |
| Tracking Error | Difference between fund return and benchmark return. | Shows how closely the product follows its target exposure. |
| Drawdown | Peak-to-trough decline. | A practical measure of pain and risk tolerance. |
| Volatility | Magnitude of price fluctuations. | High-return assets can still be hard to hold if volatility is too high. |
Reading tip: Macro data rarely has a fixed one-direction impact. The same hot jobs report can be bullish when it signals strong growth, or bearish when it pushes rate-cut expectations lower. Always interpret data through the current market regime: inflation concern, recession concern, earnings cycle, liquidity, and valuation.