With the Fed recently cutting rates by 25 bps, market focus shifts to key indicators. Tuesday at 9:45 AM EST, high-impact S&P Global Manufacturing and Services PMIs will signal economic health. Thursday at 8:30 AM EST, crucial GDP Annualized data and Initial Jobless Claims will heavily influence future rate cut expectations amid a cooling labor market. Friday at 8:30 AM EST, critical Core Personal Consumption Expenditures (PCE) Price Index (MoM & YoY) will be scrutinized as the Fed's preferred inflation gauge, guiding further monetary policy. Fed speeches also warrant attention, including Daly today at 2:30 PM EST.
Traders should brace for volatility around Tuesday's PMI releases and Thursday's GDP figures, as these will shape growth narratives and rate cut timing. Inflation traders must closely monitor Friday's PCE data, which, following the recent Fed cut, will be pivotal in dictating future monetary policy and influencing USD and equity markets.
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.