What to watch in the stock market this week 8/29-9/2
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Stock market outlook this week – August 29 to September 2
Last week revealed a lot about the outlook for the stock market for the rest of the year. The Federal Reserve is committed to using all means necessary to curb inflation. With more rate hikes expected, economic growth may be the only thing that will suffer. In our article “Best Penny Stocks to Watch After Powell’s Jackson Hole Speech”, we discussed in more detail Fed Chairman Jerome Powell’s commentary which revealed some of the risks that could weigh on the economy:
“While the weaker inflation readings for July are welcome, the single-month improvement is well below what the Committee will need to see before we are confident that inflation is coming down…Under the circumstances At present, with inflation well above 2% and the labor market extremely tight, longer-term neutrality estimates are no place to stop or take a break… Our goal is to avoid this result by acting with determination now“
With the next Federal Reserve meeting scheduled for next month, all eyes are on the central bank’s next moves. In the meantime, there are still many more economic events to consider and Fed speeches that could steer the market. This could impact penny stocks just as much as higher priced companies. This week, we’ve highlighted some of the major stock market events you need to know about this week.
What to watch in the stock market this week
The majority of events in the stock market this week will be dominated by speeches from major and minor members of the Federal Reserve. However, critical employment and manufacturing data will likely take center stage towards the end of the week.
Nonfarm Payroll, Wages and Unemployment
Non-farm payrolls are usually something that acts as an event that moves the market. These results will be the last before the next Fed meeting in September. Although the technical definition of a recession is respected (2 consecutive quarters of negative growth), some participants argue that it is not necessarily a recession due to the tight labor market. The latest round of rate hikes has weighed on prices and cooled several hot markets, including real estate and energy.
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Nevertheless, economists predict that the economy added 285,000 jobs in August and that the unemployment rate will remain at 3.5%. Average hourly wages are also expected to rise. We’ll see what happens when the hard data arrives later this week.
More economic data on the bridge
Besides the payrolls data, there is other employment-related information to weigh on the stock market this week. You have an ADP non-farm job for June that is reported mid-week. This will follow the JOLT job postings for July. Housing market data and sales data are also to be watched during midweek trading. These include the housing price index and data from the Redbook and consumer confidence on Tuesday.
If you’re unfamiliar, data from Redbook reports same-store sales growth for general merchandise retailers. A higher reading is generally seen as positive for the US Dollar, while a weaker reading is the opposite. In the meantime, it will be against a backdrop of consumer confidence that has slipped in recent months. As a measure of consumers’ outlook on the economy, July was 95.7 (below the expected 97.2), which was lower than the previous reading of 98.4. If consumer confidence beats expectations this time, however, it could be seen as bullish for the US Dollar.
Stock market snapshot
This is only a brief overview of the market and not an exhaustive list of big and small events for the coming week. However, these are some of the more prominent catalysts that might be on traders’ radar and perhaps something to keep in mind heading into the final trading days of August.
Is the Stock Market Crash Happening Right Now Following Jerome Powell’s Jackson Hole Comments? Friday, August 26, Jerome Powel reaffirmed the FED’s commitment to the fight against inflation. Powell said we should expect the pain to escape a stock market crash and recession.
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BUT… is this a stock market extinction level event (SMELE) or a MAJOR opportunity for EVERYONE? If you like day trading, swing trading, long-term investing, options trading, futures trading, and crypto trading, this is another big week.
How does the stock market work? What are the best stocks to buy now? How can you make money trading the stock market this week? Today’s stock market is very different from any other time in history. Turn on any stock or financial news station, and you know this is true!
Get ready to learn to trade and profit LIVE with True Trading Group on Sunday 08/28/2022. They host free live stock market trading predictions for the coming week on YouTube at 8:30 p.m. ET.