Fed Rate Decision and Earnings Season to Shape Market Direction
Corporate earnings season for the quarter ended Sept. 30 is underway, with key updates from AI leaders expected late October. These reports could set the tone for markets through 2025.
More crucially, the Federal Reserve concludes its October 29 policy meeting amid economic crosscurrents. With sticky inflation at 2.9% and rising unemployment, the anticipated rate cut and Jerome Powell's commentary may outweigh earnings in market impact.
The Fed's dual mandate faces tension - August's CPI shows inflation nearing the 2% target, but labor market deterioration complicates policy. This convergence of corporate fundamentals and monetary policy creates a pivotal moment for the S&P 500.