Monday's Market Minute: Big Week Ahead…As In It's Not Just The Fed!

Traders, heads up, because this could be a big week for markets. I think it goes without saying all eyes will be on the FOMC meeting decision Wednesday, the Q&A session to follow, and comments from Fed chair Jerome Powell. But in addition to rates, we have Personal Income and Spending data due out Tuesday, Chicago PMI and ADP on Wednesday, ISM and the PMI manufacturing indexes on Thursday, and this all leads up to the Big Kahuna – Friday, the jobs data and Non-Farm Payrolls.

While a 25 basis point cut is expected this week from the Fed, and many would argue is already priced in, investors will be trying to determine if this a one and done cut. Is it an attempt to roll back the hike we saw back in December? Or is it the first of more to come? While not many expect the Fed to cut 50 basis points, it seems that’s where the concern lies, in terms of if they do. Would it scare investors and spark concerns that conditions are worse than expected, and is it a sign the Fed thinks we need a more aggressive approach? The pressure is on this week for the Fed to walk a fine line – but it’s also important for the economic data to show the domestic economy is still doing fine.

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