High volatility expected today, Tuesday, with ISM Services PMI at 10:00 AM EST, crucial for growth and inflation signals amidst a softening labor market and persistent price pressures. This follows recent weak jobs data reigniting Fed rate cut expectations. Multiple Fed speeches this week will offer policy clues. Next Tuesday, August 12, CPI data at 8:30 AM EST will be paramount, directly influencing rate outlook given ongoing tariff-related inflation concerns.
Traders should brace for significant market shifts around Tuesday's ISM data and next Tuesday's CPI release, which are critical for rate trajectory. Monitor Fed commentary closely for shifts in dovish sentiment, especially given recent weak labor data and tariff-driven inflation risks.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.