Wall Street Eyes Fed's Move Amid Rate Hike Concerns

As the Federal Open Market Commission (FOMC) meeting kicks off on the 15th, the benchmark interest rate will be decided on the 16th, alongside the release of the August retail sales data.

Last weekend, the three major U.S. stock indices all closed higher.

Notably, the Nasdaq rose by nearly 1%, and the S&P 500 gained 0.86%.

The biggest turning point that will determine the direction of New York's stock market this week is the FOMC, the Federal Open Market Commission, which will be held for two days starting from the 15th.

Recently released data showed that the August core Consumer Price Index (CPI) rose 0.3% from the previous month, exceeding market expectations, while non-farm payrolls also significantly outperformed expectations with an increase of 162,000 jobs.

As inflation and employment simultaneously show such strong figures, market anxiety is weighing heavily that the Federal Reserve might pull out the card of additional rate hikes to completely tame inflation.

Meanwhile, on the 18th, the August industrial production figures will be released alongside "quadruple witching," the simultaneous expiration of quarterly derivatives, suggesting that stock market volatility will be extremely high.

The August retail sales indicator, to be unveiled on the 16th, is also a core variable.

If consumer spending remains robust despite high interest rates and high inflation, it will give the Federal Reserve a greater justification to push ahead with tighter monetary tightening to suppress demand.

This week will be a time to gauge the Federal Reserve's next steps while checking the September FOMC results, the dot plot, and retail sales indicators.
※ Please note: This article was translated by AI and may contain errors.