S&P Global Manufacturing and Services PMIs are out today, Friday, at 9:45 AM EST. The market anticipates the Federal Reserve will hold rates steady at 3.50-3.75% at Wednesday's 2:00 PM EST FOMC decision and 2:30 PM Powell presser, amid political pressure and a DOJ probe. December's 4.4% unemployment rate and 2.7% inflation (still above target) provide key context. Friday's 8:30 AM EST Producer Price Index ex-Food & Energy (YoY) is critical for the inflation outlook, with current forecasts showing January CPI at 2.35% YoY. High volatility is expected around Fed communications.
Traders should monitor today's PMI releases for immediate market reaction. Focus on Wednesday's Fed commentary for forward guidance, as a hawkish tone could strengthen the USD. PPI data on Friday will offer further inflation clues, potentially impacting bond yields and equity sectors sensitive to pricing pressures.
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.