Top 5 things to watch in markets in the week ahead

investing.com:

Investing.com — It’s going to be a very busy week for investors, with a Federal Reserve meeting, the latest U.S. jobs report and earnings from technology heavyweight Apple that could set the direction for stocks and bonds the rest of the year. Here’s what you need to know to start your week.

Investors will be turning their attention to the Federal Reserve’s policy meeting on Wednesday, eager to hear policymakers' views on the state of the economy and the outlook for interest rates.

Most investors are betting that the Fed is done tightening after Chair Jerome Powell said that rising long-term yields reduce the need for further rate increases, though some believe another hike could come when the central bank meets again in December.

Any indications that the Fed intends to keep rates around current levels through next year could bolster bets on further upside in Treasury yields, whose climb to their highest levels in more 15 years has contributed to a sharp sell-off in the S&P500.

The index has fallen more than 10% since hitting a year-high in late July, though is still up nearly 8% on the year.

The key piece of economic data this week will be Friday’s nonfarm payrolls report for October. After a blockbuster 336,000 jobs were added in September, economists are expecting more moderate jobs growth of 182,000, which is still consistent with a robust labor market.

The unemployment rate is expected to remain at 3.8%, while wage growth is expected to ease to 4% year-on-year, which would mark a post-pandemic period low. This could help bolster the Fed’s view that price pressures are easing and that it doesn't need to raise interest rates any further.

Ahead of Friday’s data, market participants will be looking at data on