Upcoming high-impact events include Friday's 8:30 AM EST Core PCE Price Index (MoM & YoY), critical for inflation outlook after August's 2.9% CPI acceleration. Markets anticipate further Fed rate cuts, with two more 25 bps reductions expected by year-end, following September's cut due to a softening labor market. Next Wednesday, ADP Employment Change at 8:15 AM EST and ISM Manufacturing PMI at 10:00 AM EST will offer key insights into labor market health and economic growth amidst cautious optimism. Traders should brace for volatility around Friday's PCE data, as inflation remains a key Fed concern despite recent rate cuts. Monitor next Wednesday's employment and manufacturing data for signals on economic deceleration, which could reinforce expectations for further dovish Fed policy.
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.