High volatility is expected today, Wednesday, with the Fed's 1:00 PM EST interest rate decision, monetary policy statement, and 1:30 PM EST FOMC Press Conference. Markets widely anticipate a 25 basis point rate cut, but Chair Powell's tone regarding the 2026 rate path will be crucial given the divergence from market expectations. Tonight, President Trump and Xi Jinping are set to meet at 7:00 PM EST in South Korea, with potential trade deal developments on tariffs expected to impact Thursday's market open. Tomorrow, Thursday, at 7:30 AM EST, Q3 Gross Domestic Product Annualized data will provide insights into economic health. Friday, at 7:30 AM EST, critical Core Personal Consumption Expenditures (PCE) Price Index (MoM & YoY) inflation metrics are due, which are the Fed's preferred inflation gauges.
Traders should brace for significant volatility around Wednesday's 1:00 PM EST Fed announcement and 1:30 PM EST Powell's press conference, focusing on forward guidance for the rate trajectory. Monitor Trump-Xi meeting outcomes tonight for potential trade impacts on global markets. Thursday's GDP and Friday's PCE data will further shape rate cut expectations and overall 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.