Top 5 things to watch in markets in the week ahead
Investing.com — After Friday’s jobs report cemented expectations that the Federal Reserve will keep interest rates on hold later this month, the economic calendar will be lighter in the coming holiday-shortened week. Stocks go into September after notching up strong weekly gains last week, while data out of China will likely add to concerns over the outlook for the world’s number two economy. The Reserve Bank of Australia will likely stand pat for a third straight meeting and supply worries look set to underpin oil prices.
Friday’s jobs report was the latest in a series of economic data indicating that the economy is heading for a so-called soft landing, adding to the view that the Fed is nearing the end of its rate hiking cycle.
Data in the week ahead is unlikely to do anything to alter this view significantly.
On Wednesday the Institute for Supply Management will release August data on service sector activity, with economists expecting it to soften slightly.
The same day the Fed will publish its Beige Book, a survey of economic activity across all the bank’s 12 districts.
Investors will also get the chance to hear from several Fed speakers during the coming week, including Dallas Fed President Lorie Logan, who speaks Wednesday followed a day later by appearances from New York Fed President John Williams, Governor Michelle Bowman, Governor Michael Barr and Chicago Fed President Austan Goolsbee.
The Dow and the Nasdaq climbed 1.4% and 3.2% last week, respectively, posting their strongest weekly performances since July. The S&P 500 gained 2.5% for its best week since June.
Friday’s jobs report bolstered expectations for the Fed to pause rate hikes at its meeting later this month.
«The data makes the case for the Fed
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