This week (12th-16th), the New York Stock Exchange (NYSE) is set to hold a “Big Week” with several large-scale materials are gathered.
The stock market is expected to be oriented in accordance with U.S. price indicators and the Federal Open Market Committee (FOMC), which will be released this week.
The Fed will hold the FOMC in December, the last monetary policy decision meeting of the year, for a two-day schedule from the 13th (local time).
The Fed is expected to raise the federal funds rate by 0.5 percentage points (50bp, 1bp = 0.01% points) at the FOMC.
In other words, the Fed, which previously carried out four 0.75 percentage point hikes, takes a step back from the so-called “Giant Step” to the “Big Step.”
According to the Chicago Mercantile Exchange (CME) Fed Watch, the Fed is likely to raise its key interest rate by 0.5 percentage points this month in the Federal Fund (FF) interest rate futures market.
However, market participants’ attention is focused on the Fed’s future plans rather than the immediate range of interest rate hikes.
In this tightening period, the key is to what level the Fed will eventually raise interest rates and how long it will maintain high interest rate levels.
After the FOMC, the Fed will announce its economic outlook, which includes forecasts of growth, inflation and unemployment.
A dot chart will also be released to gauge Fed members’ future interest rate forecasts.
The Wall Street Journal (WSJ) reported that the Fed could continue to raise interest rates more aggressively than expected next year, and that the Fed’s final interest rate could exceed 5%.
Key indicators and speaking schedules affecting NYSE Big Week
- Oracle Performance
- Day 1 of the Federal Open Market Committee (FOMC) in December
- Consumer Price Index (CPI) for November
- November NFIB Small Business Optimism Index
- December Business Optimism Index
- The second day of the Federal Open Market Committee (FOMC) in December
- Fed Economic Outlook
- Federal Reserve Chairman Jerome Powell’s press conference
- Import and Export Price Index for November
- Trip-dot-com performance
- European Central Bank (ECB) Announcement of Base Interest Rate
- Bank of England (BOE) announces key interest rate
- Number of new unemployment claims per week
- Retail sales in November
- Empire State Manufacturing Index for Dec
- Federal Reserve Bank of Philadelphia Manufacturing Index for Dec
- Industrial production and facility operation rate in November
- Corporate inventory in October
- Adobe’s performance
- Standard & Poor’s Global Manufacturing, Non-Manufacturing Purchasing Managers’ Index (PMI) Reserve in December