Stock market next week: Investors wonder what will happen after October’s tumultuous start
A strong start to trading in October has left Wall Street wondering what will add to stocks in the future. All three major stocks posted modest gains after a shaky week. The Dow Jones Industrial Average and Nasdaq Composite each added 0.1% for the week, while the S&P 500 rose 0.2%. Stocks struggled this week as escalating conflicts in the Middle East sparked the strongest rally in oil prices since March 2023. But stocks rallied on Friday after strong jobs report, canceling the big losses that the three major sectors were tracking for going into the conference. October is often a tough trading month as investors take profits ahead of annual meetings. But after 2024 saw the strongest performance in the first nine months of the year since 1997, traders hoped the market could continue to defy the odds and build on this year’s gains. . Now, investors are left wondering what could rule the market, especially considering that from the upcoming presidential election to political politics, there is reason to be cautious. “The stock market has lived up to October’s reputation for increased stability,” said Glen Smith, chief financial officer at GDS Wealth Management. “We expect this choppiness to continue for the next few weeks as the market begins to navigate the uncertainty surrounding the election, the next Federal Reserve action and corporate earnings reports. ” Put another way, the market won’t “sell off anywhere” between now and the presidential election, Mike Dickson of Horizon Investments told CNBC Pro. Although he said there could still be a year-end meeting in November and December once uncertainty surrounding White House control is in the rearview mirror. In retrospect, the market seems to be doing well. If the year ended on Friday, the S&P 500 would close with a gain of about 20.5%. “Given the fact that the market is so strong this year, we’re a bit underpriced for perfection,” said Chris Zaccarelli, chief financial officer at the Independent Advisor Alliance. Inflation report, Fed minutes on the floor for the week Next week, investors will be keeping an eye on several possible developments. On Wednesday, investors will watch minutes from the central bank’s September meeting for clues about the future path of monetary policy. However, since the Treasury has gone with the big cut in rates, Zaccarelli says there is little need to understand what happened behind the scenes. The consumer price list is coming in a day. It has been seen as an important economic release in the past few years as inflation has been rampant. But Horizon Investment’s Dickson said inflation is now taking a back seat to labor data after the Fed’s last meeting. It has also lost popularity as the annual inflation rate has fallen close to the central bank’s 2% target, he noted. “I would say the inflation report is probably less important than it used to be,” Dickson said. “But being surprised in the wrong way could have some effect on future rate policy.” Producer price index data comes on Friday, providing insight into inflation from the perspective of retailers. Credit statistics and consumer sentiment are also among the prominent releases on the docket. The first innings of the bonus season also begins next week. PepsiCo posts earnings on Tuesday, followed by Delta on Thursday. JPMorgan Chase and Wells Fargo ended the week with Friday reports. Next week Tuesday 6 am: NFIB Small Business Index (September) 8:30 am: Import/export data (August) Before metal earnings: PepsiCO Wednesday 7 am: Mortgage applications (week ended Oct. 4) 10 am: Wholesale inventories (August) 2 pm: FOMC minutes Thursday 8:30 am: CPI (September) 8:30 am: Initial jobless claims (week ended Oct. 5) 11 am: New York Fed President John Williams speaks Before metal earnings: Delta , Tilray Friday 8:30 am: PPI (September) 10 am: University of Michigan consumer opinion Before metal earnings: BlackRock, Bank of NY Mellon, JPMorgan Chase, Fastenal, Wells Fargo
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