Market Outlook: Big Bank Earnings, Fed Speeches, and Shutdown Data Delays
Investors brace for a volatile week as geopolitical tensions and a prolonged government shutdown cloud the economic outlook. Friday's selloff, triggered by escalating US-China trade rhetoric, sets a cautious tone. Market participants will scrutinize earnings reports from JPMorgan Chase, Wells Fargo, and Goldman Sachs for signals about financial sector health.
The semiconductor industry takes center stage with TSMC's results, while United Airlines' performance may offer insights into consumer resilience. Economic data faces disruption—wholesale inflation figures, retail sales, and housing starts risk delay as the budget impasse enters its third week.
Federal Reserve commentary remains in focus, with Chair Powell's remarks potentially moving markets. Bond traders get a brief respite with Monday's Columbus Day closure, though equity markets remain open. The absence of key data points forces investors to rely on alternative indicators like homebuilder surveys and small business Optimism metrics.
