Tomorrow, Tuesday, S&P Global Manufacturing/Services PMI at 9:45 AM EST (Vol 3) and Fed Chair Powell's speech at 12:35 PM EST (Vol 3) are critical. Markets seek Powell's policy guidance after last week's 25bp rate cut, driven by labor market softness despite elevated inflation. Thursday's Q2 GDP Annualized at 8:30 AM EST (Vol 3) will assess growth amid slowing projections. Friday's Core PCE Price Index (MoM/YoY) at 8:30 AM EST (Vol 3) is the week's central focus, crucial for future Fed easing expectations.
Traders should closely monitor Tuesday's PMI data and Powell's speech for immediate market direction following the recent rate cut. Expect heightened volatility around Thursday's GDP release and especially Friday's pivotal PCE inflation report, which will significantly shape expectations for further Fed policy adjustments and market sentiment.
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.