The upcoming week on Wall Street is set to be dominated by the Federal Reserve, with market participants eagerly awaiting insights into the direction of monetary policy rather than just the anticipated interest rate cut. A 25-basis-point cut is largely expected following the conclusion of the Fed’s two-day policy meeting on Wednesday, with speculation also lingering around a potential 50-basis-point cut. Key economic indicators, including retail sales data on Tuesday and housing starts on Wednesday, may play a role in shaping this outcome. However, the release of unemployment insurance claims data on Thursday comes too late to influence the Fed’s decision.
Amid a backdrop of mixed inflation reports—cooler wholesale price data juxtaposed with rising consumer prices—the prevailing sentiment remains that the Fed could implement a total of 75 basis points in cuts by the end of the year. Some analysts are even beginning to consider a further 25-basis-point reduction possible in January 2026. Markets will be closely watching Fed Chairman Jerome Powell’s comments during his post-meeting news conference on Wednesday at 2:30 PM ET for clues about future policy directions.
After a series of cuts last year, the Fed has maintained its position while assessing the effects of monetary policy on inflation and job growth. Inflation data from September indicated a 2.4% increase compared to the prior year, with Powell expressing concerns over slowing job growth—a crucial part of the Fed’s dual mandate to maintain price stability and maximize employment. Recent nonfarm payroll figures have shown discouraging trends, prompting considerations for an adjustment in the Fed’s policy stance.
In addition to the Fed’s anticipated moves, two notable companies will be holding investor days this week. Cybersecurity firm CrowdStrike will commence its Falcon conference in Las Vegas on Tuesday, featuring a keynote speech by CEO George Kurtz. Although the company posted strong quarterly results in late August, its stock has faced a downturn of 16% since reaching a peak of nearly $518 in early July. Still, CrowdStrike shares are up approximately 27% year-to-date, prompting them to maintain a buy-equivalent rating with a price target of $520.
Later in the week, DuPont will host an investor day to unveil plans for its upcoming spinoff of its electronics business, which is set to occur on November 1. The electronics segment, which manufactures products for the semiconductor industry, is positioned to benefit from the ongoing AI trade. Despite challenges, DuPont shares have slowly started to trend higher since early April, managing a slight increase of over 1.5% year-to-date.
The week’s schedule includes significant economic reports and earnings announcements from various companies, highlighting a mix of important developments that could impact market dynamics. Notable events include retail sales data, housing starts, and key earnings from companies like General Mills and FedEx. With such a packed agenda ahead, investors are preparing for potential volatility as they anticipate the Fed’s next moves and the performance of key industry players.
In summary, Wall Street’s focus remains on the Fed’s decisions and communication, while also keeping an eye on corporate earnings and critical economic indicators that may shape the financial landscape in the coming weeks.
