High-impact events this week include Wednesday's 2:00 PM EST FOMC Minutes and Thursday's 8:30 AM EST Fed Chair Powell speech, both critical for rate outlook amid market expectations of a late-October cut. A government shutdown delays jobless claims, but private payrolls softened, increasing dovish sentiment. Friday's 10:00 AM EST Michigan Consumer Sentiment Index is key, given weak confidence and lingering inflation concerns from tariffs. Volatility expected around Fed communications as policymakers remain split on future rate path.
Traders should monitor Fed communications closely, especially Powell's remarks, for clues on future rate decisions, particularly given the government shutdown's impact on data. Position for potential volatility around FOMC minutes and consumer sentiment data, as market pricing for rate cuts is aggressive.
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.