Stock Market Outlook For This Week: September 19th to September 23rd
Last week in the stock market was another volatile one full of massive price swings thanks to surprising economic data. The jewels of the week were US Producer Price (PPI) and Consumer Price (CPI) data with little on the Fed speak front. We also saw jobs data and retail sales briefly help bulls but to no avail. All of this set the stage for what could be one of the busiest and most volatile weeks of September.
That’s because this is Fed Meeting (FOMC meeting) week. This week reveals the long-awaited rate hike decision that will likely make its mark on investors. More than that, however, we’ve added some critical global economic events that could play a part in the stock market this week.
Whether you’re trading penny stocks or higher-priced names, monetary policy decisions could sway daily trends. The Bank of England, Bank of Japan, Germany, Great Britain, and the Eurozone all have economy & monetary policy data coming throughout the week. In addition to US Fed speak, it may also be essential to watch what European Central Bank (ECB) members have to say about their outlook on the economy.
Stock Dropped Ahead Of September FOMC Meeting This Week
Thanks to the surprise inflation data, markets tumbled last week. The major index ETFs including the S&P 500 (NYSEARCA: SPY), Nasdaq (NASDAQ: QQQ), Russell 2000 Small Cap Index (NYSEARCA: IWM) and Dow (NYSEARCA: DIA), fell lower as investors pivoted to begin pricing in a more aggressive Federal Reserve. Not only was this based on economic data but also reports from companies like FedEx (NYSE: FDX), which missed revenue estimates while also withdrawing full-year guidance.
When asked if the economy is going into a worldwide recession, FedEx CEO Raj Subramaniam said in an interview with CNBC’s Jim Cramer, “I think so. But you know, these numbers, they don’t portend very well…I’m very disappointed in the results that we just announced here, and you know, the headline really is the macro situation that we’re facing.”
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The market is also pricing in a high chance of a 75 basis point hike and even as high as a 100 basis point hike at the September FOMC meeting. Is this the week the stock market crash puts in new lows for 2022?
Let’s see what’s ahead in the stock market this week:
What To Watch In The Stock Market This Week
With the addition of global economic data, it will be essential to understand that this may or may not be catalysts depending on other events in the US markets.
Stock Market News & Events For Monday, 9/19
The stock market on Monday, September 19, 2022, is a lighter day for economic events, but that doesn’t mean there aren’t things to know about. The National Association of Home Builders (NAHB) Housing Market Index data is coming out just after the opening bell. A higher-than-expected read is generally bullish for the US dollar and vice versa when it’s lower than expected. The NAHB forecast is 47 right now, which would be lower than the previous read for August, which came in at 49. Since hitting 79 in April, the NAHB Index has continued declining month-over-month.
After the stock market closes, Japan’s national CPI and Core CPI for August will get reported. Expectations for Core CPI are set at 2.7%, which would be slightly higher than the previous CPI read of 2.4%. Last week we saw how surprise CPI and PPI data could move markets. Whether or not Japan’s economic data experiences the same is to be seen but surely will be revealed Monday evening.
Stock Market News & Events For Tuesday, 9/20
The stock market on Tuesday, September 20, 2022, begins to see some added speculation based on economic data and ECB speak. An hour before the US market opens, we’ll get the August Building Permits, and Housing Starts data. These are expected to reach 1.610 million and 1.445 million, respectively. Both would be slightly lower than the previous reads, which came in at 1,685 million and 1.446 million. Like NAHB data, starts and permits have declined throughout the year on a month-over-month basis.
ECB member McCaul speaks at 11 AM ET, while ECB President Lagarde speaks at 1 PM ET. The latter of these two speaking engagements could bring a bit more volatility depending on what is said. Since the ECB sets short-term interest rates, Christine Lagarde’s outlook could weigh heavily upon the future of monetary policy and rate shifts for the Eurozone.
Tuesday is also when the September FOMC meeting begins.
Stock Market News & Events For Wednesday, 9/21
That last sentence was a lead-in to what could be one of the most important days of the stock market this week. We get more housing data from Mortgage Rates, Applications, and Purchase Index. Existing Home Sales for August will also be in the spotlight early on. For those watching energy stocks, Crude Oil Inventories come out around the same time as Home Sales.
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But the 2 PM ET to 3 PM ET hour will be important and could move markets. That’s because the September Fed Meeting comes to completion, and we’ll get confirmation on the future of monetary policy, including the latest rate hike figures. The FOMC press conference at 2:30 PM ET on September 21st will likely add more detail to digest as it always does.
Stock Market News & Events For Thursday, 9/22
The stock market on Thursday, September 22, 2022, will likely be the FOMC hangover day for markets, but no time to take a breather. That’s because the Bank of England interest rate decision and BoE Monetary Policy Committee (MPC) minutes come out early in the US premarket session at 7 AM ET. This is a lead-in to the latest jobs data at 8:30 AM ET, including initial, continuing, and 4-week average jobless claims.
Stock Market News & Events For Friday, 9/23
The stock market on Friday, September 23, 2022, caps off the hectic week. We’ll get early morning economic data from Germany, the Eurozone, and the UK. Plus, US Manufacturing Services PMI comes out right after the stock market opens. But again, FOMC and Fed events will likely captain the ship. Fed Chair Jerome Powell is set to speak at 2 PM ET.
What’s going on with the Fed on September 23rd? The Federal Reserve Board hosts a Fed Listens event: Transitioning to the Post-pandemic Economy. Representatives from many sectors will share perspectives on the pandemic’s impact on reshaping the economy and workforce.
They will also discuss challenges and opportunities that exist during the transitional period. Fed Chair Jerome Powell provides opening remarks while Vice Chair Brainard and Governor Bowman moderate conversations from organizational leaders.
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Stock Market Snap Shot For This Week
This is just a brief snapshot of what to watch in the stock market this week. These are some of the higher-profile catalysts that could sway sentiment and dictate the overall trends. This Week’s FOMC Meeting could mean that this is one of the Biggest Weeks of 2022.
Every trader and investor in the stock market today is asking the same questions:
- What Happens Next in The Stock Market with this week’s Fed Meeting?
- Is the stock market crash going to take stocks to new 2022 lows?
- What other stock market news can move the market this week?
- How Can I Make Money Trading in The Stock Market?
- What stocks to buy now in 2022?
The answer to all of these questions will come down to the outcome of this week’s Federal Reserve Meeting & press conference. When is the September 2022 FOMC Meeting? It begins on Tuesday, September 20, 2022, and concludes on September 21, 2022, with the Fed Press Conference at 2:30 PM ET.
What’s Next For The Stock Market?
Will Fed Chair Jerome Powell raise rates 75 basis points or is a 100 bps hike in store? Will the recession be avoided and is a soft landing really possible after last week’s surprise August CPI data and August PPI inflation data?
Many investors are already working overtime in the stock market this week, giving countless stock market and trading predictions as well as their stock market outlook and trading game plan for this week. They will surely weigh in on the stock market crash, recession, inflation, stagflation, and this stock market game, in general.
If you ever wondered How to start investing in the stock market, How the stock market works, or asked yourself, “Is this a stock market for beginners,” it’s time to pay attention.
True Trading Group is hosting a stock market live stream that will answer those very questions and a lot more! Get Ready To Learn To Trade & Profit LIVE with True Trading Group, Tonight, Sunday, 9/18/2022. They host free stock market live trading predictions for the week ahead on YouTube at 8:30 PM ET.
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