High volatility is expected Tuesday with Retail Sales data at 8:30 AM EST, which will significantly impact the consumer spending outlook. Wednesday brings critical inflation and employment data at 8:30 AM EST, including CPI and Nonfarm Payrolls, which will heavily influence Fed rate expectations. Multiple Fed speeches today and tomorrow could also provide market direction ahead of these key releases. Further CPI data is due Friday at 8:30 AM EST.
Traders should brace for significant market moves around Tuesday's retail sales and especially Wednesday's CPI/NFP releases. Focus on inflation and labor market health for clues on future Fed policy. Volatility is likely to remain elevated throughout the week.
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.