Wall Street is bracing for a crucial week, with investors closely monitoring the US Federal Reserve’s interest rate decision, quarterly earnings from major technology companies and a series of economic data releases.
The Federal Open Market Committee (FOMC) will hold its two-day monetary policy meeting, with the rate decision scheduled for Wednesday. Investors will also assess the first estimate of third-quarter gross domestic product (GDP) and October core Personal Consumption Expenditures (PCE) inflation data.
The Federal Reserve’s policy announcement will be the main market driver this week. The central bank raised interest rates in September for the first time since 2023 to tackle persistent inflation.
However, Fed funds futures on Friday indicated less than a 10% probability of another rate hike at Wednesday’s meeting, according to LSEG data. Analysts expect a possible increase at the December meeting.
The Fed continues to express concerns about inflation remaining above its target. Meanwhile, weakening consumer confidence and emerging signs of stress in the labour market have complicated the economic outlook.