Markets brace for Fed rate decision as inflation data and earnings flood in
US markets showed mixed results on Thursday as Meta Platforms gained ground after reports of reduced Metaverse spending. Meanwhile, jobless claims fell below expectations, offering a positive sign for the economy. Investors are now turning their attention to a busy week ahead, packed with corporate earnings and key economic updates.
Stock index futures opened higher on Friday, with traders waiting for new inflation figures. These numbers will help shape expectations for the Federal Reserve’s next move on interest rates. The CME FedWatch Tool currently puts the chance of a 25-basis-point rate cut at 87%.
Next week’s earnings calendar is packed. Johnson & Johnson will release its results on Friday. On Monday, Toll Brothers and Compass Minerals will follow. Tuesday brings reports from AutoZone, GameStop Corp., and Campbell’s. Wednesday features Oracle, Adobe, and Daktronics. The week wraps up on Thursday with earnings from Broadcom, Costco, and lululemon athletica.
Beyond corporate results, investors will watch several economic reports. These include inflation expectations, small business confidence, job openings, mortgage applications, and the employment cost index. The Federal Reserve’s interest rate decision, due next week, will also be a major focus.
The coming days will provide a clearer picture of economic health and corporate performance. With earnings from major firms and critical inflation data on the way, markets are bracing for potential shifts in Fed policy. Traders will be looking for signals on whether the central bank will proceed with an expected rate cut.
