Thursday's 8:30 AM EST Gross Domestic Product Annualized (Volatility 3) is the highest-impact event this week, with the Atlanta Fed's GDPNow model estimating Q4 2025 growth at 5.3%. This follows today's numerous Fed speeches and jobless claims. Also on Thursday, Core Personal Consumption Expenditures (PCE) data (Volatility 2) at 8:30 AM EST will offer crucial inflation insights. Markets anticipate the Fed holding rates steady in January amidst political pressure and a DOJ probe into Chair Powell, seeking clearer inflation and labor market signals before any policy shift.
Traders should keenly watch Thursday's GDP and PCE releases for significant market movements, especially given ongoing Fed uncertainty and political headwinds. Strong economic growth or persistent inflation could delay anticipated rate cuts, while weaker data might accelerate easing expectations. Volatility around Fed communications remains elevated.
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.