What Federal Reserve Chair Jerome Powell says about the path to monetary easing next week is important for the stock market, advocating interest rate cuts. Next week’s Fed meeting is an important meeting. Investors are confident that the central bank will have to cut prices for the first time since December at the end of the September 16-17 meeting, and some are hoping for a half-center point cut for the Jumbo. Not only that, but the latest summary of economic forecasts has also come to an end, giving insight into how policymakers think through monetary policy. Lower rates can turbocharge stock markets that are already surged. But economic risks – especially in the labor market, it is becoming more apparent. These concerns are beginning to emerge elsewhere, such as in bond markets and gold growth. This week, the shorter edge of the yield curve moved higher, while the longer edge was lower, but development investors could have an impact on the stock. “The overall yield curve is decreasing, but the curve is also changing its shape,” said Mark Malek, investment chief at Siebert Financial. “It’s possible that people are really worried, and we start to worry that these jobs are the seeds of what could be a slowdown in the economy.” “We really need to continue,” Marek said. “There are some messages on that yield curve. I don’t know if anyone knows what it is yet.” US10y Ytd Mountain US Treasury yields for 10 years, while the stock market itself continues to rise. On Friday, the large average was set to close in positive territory that week. The Dow Jones industrial average is about 1% higher. The S&P 500 remains close to an all-time high of over 6,500, with a 1.6% increase. This week, the high-tech Nasdaq composites rose by 2%. “Characteristics of anxiety” Many investors believe that artificial intelligence will continue to support advances in the stock market even in the face of a slower economy. That’s how long it’s the problem. In theory, there could be a point of “crossover,” and Sibert Financial’s Marek says the weakness in the economy loses enthusiasm for AI build-outs. However, few investors expect it to be anytime soon. “I don’t know that I’ve seen anything I feel like is an opportunity for growth and expansion like (AI). We’ve seen similar things. But this is really sustainable and…and it’s not throwing us anything,” Marek said. “Even the slowdown in the economy can still make a long-term claim to own these stocks.” “I don’t think there’s anything in the market that lasts forever. There are days when they either lose the necessary escape speed for themselves or are forced into the economy,” continued Marek. “I don’t know what that point is yet. At this point, it certainly isn’t here.” Certainly there is a source of concern in the economic outlook. This week’s Consumer Price Index has healed investors, showing inline readings compared to the previous year. However, peeping under the hood shows that pricing pressure is exacerbated in many products. Like automotive parts, apparel prices have risen. Grocery recorded its biggest increase since August 2022. That’s rare for the market. This week, the benchmark 10-year US Treasury yield fell to 4.0%. Gold Price continues to meet after three years of bull run. All of these cross-current items are items investors are beginning to allocate. “All the typical features of anxiety lie in the market,” Marek said. Calendars for a week ahead, etc. Monday, September 15th 8:00 AM Empire State Index (September) Tuesday, September 16th 8:30 AM Export Price Index (August) 8:30 AM Import Price Index (August) 9:15 AM Capacity Usage (August) 9:15 AM Industrial Production (August) 9:15 AM Manufacturing Production (August) 10:00 AM Business Inventory (July) 10:00 NAHB Housing Market Index) Housing Start (August) 2:00 PM FOMC Meeting 2:00 PM FOD FOD FUND Jeff Cox of CNBC contributed to this report.
