Introduction to the Week Ahead
The week ahead is expected to be filled with significant events that will shape the US economy. The spotlight will be entirely on the US Federal Reserve’s seventh monetary policy decision of the current year, scheduled to take place on Wednesday. This highly anticipated event is expected to have a major impact on the financial markets.
Expected Interest Rate Decision
At the upcoming meeting, the central bank is widely expected to reduce interest rates due to a slowdown in the labor market. This decision is likely to be influenced by recent economic data, including reports on retail sales, industrial production, and housing starts. The Fed’s two-day meeting, scheduled to begin on September 16 and conclude on September 17, will culminate in a policy decision that will be closely watched by investors and economists alike.
Economic Calendar
The economic calendar for the week ahead is packed with important reports and data releases. On September 15, a report on the Empire State manufacturing survey for September will be released. This will be followed by separate reports on US retail sales for August, import price index for August, industrial production for August, and home builder confidence index for September on September 16. On September 17, housing starts for August and the FOMC interest rate decision will be released, along with Fed Chair Jerome Powell’s press conference.
Earnings Reports
Several big companies are slated to declare their financial results in the week ahead. These include FedEx, General Mills, Dave & Buster’s Entertainment, Radiant, Ferguson, Evolution Petroleum, Flux Power Holdings, Lennar, FactSet Research, and MoneyHero Limited. The earnings reports will provide valuable insights into the performance of these companies and the overall state of the economy.
Market Performance Last Week
US stock markets closed mixed on Friday ahead of the Federal Reserve’s policy meeting. The S&P 500 fell 0.05% to end the session at 6,584.29 points, while the Nasdaq rose 0.45% to 22,141.10 points. The Dow Jones Industrial Average lost 0.59% to 45,834.22 points. For the week, the S&P 500 rose 1.6%, the Dow climbed almost 1%, and the Nasdaq added 2%. The yield on the 10-year Treasury rose to 4.06% from 4.01%, and gold prices rose to near record $3,650 an ounce on expectations that the Fed is poised to lower US interest rates.
Conclusion
In conclusion, the week ahead is expected to be a significant one for the US economy, with the Federal Reserve’s interest rate decision being the main event. The economic calendar is packed with important reports and data releases, and several big companies are slated to declare their financial results. As investors and economists await the Fed’s decision, they will be closely watching the markets and the economy for any signs of what is to come. With the potential for interest rate cuts and the ongoing tensions between the US President Donald Trump’s administration and Fed policymakers, the week ahead is shaping up to be a thrilling and unpredictable ride for the US economy.
