High volatility expected tomorrow, Friday, December 5, with Core PCE and Michigan Consumer Sentiment at 8:30 AM and 10:00 AM EST, respectively, crucial for inflation outlook. Markets are pricing an 80-87% likelihood of a December rate cut, making these inflation prints highly impactful. The main event is next Wednesday, December 10, with the FOMC Interest Rate Decision, Economic Projections, and Press Conference at 2:00 PM and 2:30 PM EST. Markets will scrutinize Fed's forward guidance for 2026 amid dovish sentiment. Next Thursday, December 11, brings PPI ex Food & Energy at 8:30 AM EST, impacting producer inflation expectations.
Traders should prepare for significant market swings around Friday's PCE data, potentially influencing rate hike expectations. Extreme volatility is anticipated next Wednesday during the Fed's announcements; watch for shifts in dot plot projections and Powell's presser. Position carefully ahead of these key inflation and monetary policy releases.
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.