High-impact events this week include Tuesday's S&P Global Manufacturing/Services PMIs at 9:45 AM EST and Fed Chair Powell's speech at 12:35 PM EST. PMIs are expected to show continued expansion, while Powell's tone is critical after the Federal Reserve's recent 25bps rate cut amidst persistent inflation concerns. Thursday brings Gross Domestic Product Annualized at 8:30 AM EST, with Q3 GDP estimates currently strong (Atlanta Fed GDPNow at 3.3%), but economists note growing recession risks for Q4. Friday's Core Personal Consumption Expenditures Price Index (MoM, YoY) at 8:30 AM EST is crucial, as inflation remains above the Fed's 2% target, with some officials warning of persistent price pressures.
Traders should expect significant volatility around these releases. Strong PMI data and robust GDP could temper further rate cut expectations, while elevated PCE inflation might reinforce hawkish Fed sentiment, impacting equities and bond yields. Monitor Fed speakers closely for policy clarity.
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.