Key Market Events and Data to Watch in the Holiday-Shortened Trading Week
This holiday-shortened trading week brings several key events that could influence market sentiment, including new inflation data ahead of the Federal Reserve's September policy meeting. The release of August producer price index (PPI) and consumer price index (CPI) reports will be closely watched as they may determine whether a rate hike is likely at the Fed’s upcoming FOMC meeting. Market expectations are currently pricing in about a 60% chance for an increase, according to CME Group's FedWatch tool. Fed Governor Christopher Waller recently indicated that his decision on policy will be heavily influenced by August inflation data and suggested he would support keeping rates steady if progress toward the 2% target continues. However, stronger-than-expected jobs data last week shifted some of these expectations back in favor of a hike. The PPI is expected to show modest monthly gains with core measures also rising slightly. In addition to macroeconomic indicators, investors will be watching Apple's iPhone launch event and investor conferences featuring Club holdings executives as earnings season winds down.
Topics: earnings season Federal Reserve inflation interest rates trading volume