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What Might Be Ahead this Week?

The stock market might be positioned for a more turbulent week on the return of investors on Tuesday. The week has been shortened by the Labor Day celebration. The US stock market will, therefore, be closed.

The Past Week Closed in a Loss

The three main indexes experienced slides in the later part of Friday’s session. It closed a third consecutive week where they ended with losses. The jobs report declared that 315,000 more jobs were added to the economy in August but unemployment increased to 3.7% in the same period.

The Chairman of the US Federal Reserve, Jerome Powell, is expected to deliver an address on Thursday during the 40th annual conference of the Cato Institute. The conference will come up just a day after the Fed’s beige book is released.

There will be busy economic schedules at other places across the globe. The RBA, BOE, and the Canadian central bank are all preparing for their individual meetings as they all try to control the increasing inflation rates. The ECB might increase interest rates by 75 basis points following the new price jumps in the Eurozone.

Apple will begin its annual product unveiling on Wednesday. This year’s event will come up at the tech giant’s headquarters in Cupertino.

It is expected that Apple will unveil two iPhones, an AirPod, and a Watch. The updates for iPad and MacBook are scheduled for October. Apple is the heaviest part of S&P 500 futures as it accounts for over 7% of it.

All Eyes on the Feds

There have been light earnings toward the end of this season but this week promises reports from firms such as GameStop, Kroger, and DocuSign.

Note that the market’s attention will not be shifted away from the Federal Reserve’s next interest rate announcement by corporate activities. The ongoing market volatility is a sign that traders are getting ready for another huge rate. Taking a cue from Powell’s statements, the Feds are ready to restore economic stability.

Economists have said that the average growth around employment was a welcome development for the Federal Reserve, but it will not deter it from implementing a heavy rate this month. Powell mentioned last month that the Feds will get interest rates to a restrictive place in order to curb inflation.

The Fed Chair said what happens in September is going to depend largely on changing outlooks and incoming reports. 

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