Stock Market Outlook This Week – August 29th to September 2nd
Last week revealed plenty about the outlook for the stock market during the rest of the year. The Federal Reserve is dedicated to using any means necessary to curb inflation. With more rate hikes planned, economic growth could be the thing that suffers. In our article “Best Penny Stocks To Watch After Powell’s Jackson Hole Speech,” we discussed Fed Chair Jerome Powell’s commentary in more detail, which revealed some of the risks that could be in front of the economy:
“While the lower inflation readings for July are welcome, a single month’s improvement falls far short of what the Committee will need to see before we are confident that inflation is moving down…In current circumstances, with inflation running far above 2 percent and the labor market extremely tight, estimates of longer-run neutral are not a place to stop or pause…Our aim is to avoid that outcome by acting with resolve now“
With the next Federal Reserve meeting planned for next month, all eyes are glued to the central bank’s next moves. In the meantime, there are still many other economic events to consider, and Fed speaking engagements set that could drive market direction. It could impact penny stocks just as much as higher-priced companies. In this article, we’ve highlighted some of the top stock market events to be aware of this week.
What To Watch In The Stock Market This Week
The majority of the events in the stock market this week will be dominated by major and minor Federal Reserve member speeches. However, critical employment and manufacturing data will likely be in focus toward the end of the week.
Nonfarm Payrolls, Wages, & Unemployment
Nonfarm payrolls are usually something that acts as a market-moving event. These results will be the last before the next Fed meeting in September. While the technical definition of a recession has been met (2 consecutive quarters of negative growth), some participants say this isn’t necessarily a recession based on the tight labor market. The latest round of rate hikes has weighed on pricing and cooled down several hot markets, including real estate and energy.
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Nevertheless, economists anticipate the economy added 285,000 jobs in August and that the unemployment rate will hold at 3.5%. Average hourly wages are also expected to increase. We’ll see what happens when the hard data comes later this week.
More Economic Data On Deck
Other than payroll data, there’s other job-related info to weigh in the stock market this week. You’ve got ADP nonfarm employment for June getting reported mid-week. This will follow the JOLTs Job Openings for July. Housing market data and sales data are also something to watch out for during mid-week trading. These include the Housing Price Index and Redbook and Consumer Confidence data on Tuesday.
If you’re unfamiliar, Redbook data reports same-store sales growth for general merchandise retailers. A higher readout is generally seen as a positive for the US dollar, while a lower read is the opposite. Meanwhile, it will be against a backdrop of consumer confidence which has slipped in recent months. As a measure of consumers’ outlook on the economy, July was 95.7 (below the 97.2 expected), which was lower than the previous read of 98.4. If Consumer Confidence comes in above expectations this time, however, it could be seen as bullish for the US dollar.
Stock Market Snap Shot
This is just a brief snapshot of the market and not an exhaustive list of big and small events for the week ahead. However, these are some of the higher-profile catalysts that could be on the radar for traders and maybe something to keep in mind heading into the final trading days of August.
Is The STOCK MARKET CRASH Happening Right NOW as a Result of Jerome Powell’s Comments at Jackson Hole? On Friday, August 26th, Jerome Powel reaffirmed the FED’s commitment to fighting inflation. Powell stated that we should expect pain eluding to a stock market crash & recession.
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BUT… is this a (SMELE) Stock Market Extinction Level Event or a MAJOR Opportunity for EVERYONE? If you’re into Day Trading, Swing Trading, Long Term Investing, Options Trading, Futures Trading & Crypto Trading, this is another important week.
How does the stock market work? What are the best stocks to buy now? How can you make money trading in the stock market this week? The stock market today is very different from any other time in history. Turn on any stock market or financial news station, and you know this to be true!
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