The upcoming week on Wall Street is anticipated to be action-packed, marked by significant economic reports and notable speeches from U.S. Federal Reserve officials, including Chairman Jerome Powell and Vice Chair for Supervision Michelle Bowman. Following a recent interest rate cut, market participants will focus intently on the Fed’s commentary and the latest economic data, as the central bank has hinted at potential further rate reductions later this year.
On Wednesday, the Federal Reserve announced a 25 basis point cut in interest rates, citing a weakening labor market as the primary driver for its decision. The Fed emphasized that the trajectory of future policy would be closely linked to economic developments.
Several crucial economic reports are set to be released during the week, notably monthly home sales figures and the third and final GDP estimate for the second quarter. Additional data, including personal income and spending statistics and the Personal Consumption Expenditures (PCE) Price Index, which the Fed uses as its preferred inflation gauge, will also attract attention.
In terms of earnings, the week will feature financial results from key players such as Micron Technology, Accenture, and Costco, among others.
The economic calendar includes the following highlights:
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September 23 (Tuesday): Reports on the S&P flash U.S. Services PMI and Manufacturing PMI for September will be unveiled alongside a speech from Jerome Powell.
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September 24 (Wednesday): New home sales data for August will be released.
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September 25 (Thursday): Key reports on initial jobless claims for the week ended September 20, the third estimate of Q2 GDP, the advanced U.S. trade balance in goods for August, and existing home sales for August will be published.
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September 26 (Friday): Data on personal income and spending for August, the PCE index for August, and final consumer sentiment for September will be shared.
Last week, U.S. stocks reached new record highs. The Dow Jones Industrial Average rose by 0.4% to close at 46,315.27, while the S&P 500 increased by 0.5% to finish at 6,664.36. The tech-heavy Nasdaq Composite Index also saw gains, advancing by 0.7% to settle at 22,631.48. In the bond market, the yield on the 10-year Treasury rose slightly to 4.12% from a previous 4.11%.
With various economic indicators and corporate earnings reports on the horizon, investors are gearing up for a week that could influence the direction of the markets in the coming months.
