Wall Street: Financial markets are preparing for an exceptionally busy week dominated by the Federal Reserve’s penultimate monetary policy meeting of the year. Following softer-than-expected September consumer inflation figures and signs of a slowing labour market, investors are widely anticipating the US central bank will enact another 25 basis point interest rate cut on Wednesday.

Beyond the Fed’s decision, the week will be packed with third quarter earnings reports, placing a significant spotlight on five of the ‘Magnificent Seven’ tech giants: Microsoft, Alphabet (Google), Meta Platforms (Facebook), Apple, and Amazon.

Market participants will also be closely monitoring major economic data releases, including the third quarter GDP (Gross Domestic Product), the PCE (Personal Consumption Expenditures) index, and personal income figures, which will further inform the economic outlook.

Economic Calendar

On October 27 (Monday), a report on durable-goods orders for September will be released.

On October 28 (Tuesday), separate reports on S&P Case-Shiller home price index (20 cities) for August and consumer confidence for October will be released.

On October 29 (Wednesday), separate reports on pending home sales for September and FOMC interest rate decision will be released.

Fed Chair Jerome Powell press conference scheduled on Wednesday.

On October 30 (Thursday), separate reports on initial jobless claims for the week ended October 25 and third quarter (Q3) GDP will be released..

On October 31 (Friday), separate reports on personal income for September, consumer spending for September, PCE index for September, employment cost index for Q3, and Chicago Business Barometer (PMI) for October will be released.

Earnings

Following companies are due to report third quarter results in the week ahead — Waste Management, Keurig Dr Pepper, Brown & Brown, FTAI Aviation, F5, Visa, UnitedHealth, NextEra Energy, Booking, United Parcel Service, PayPal, MSCI, Microsoft, Alphabet, Meta Platforms, Caterpillar, ServiceNow, Boeing, Apple, Amazon.com, Eli Lilly, Mastercard, Reddit, Exxon Mobil, AbbVie, Chevron, and Charter Communications.

Markets Last Week

Wall Street rose to record high on Friday after an update said US households are feeling a bit less pain from inflation than feared.

The inflation data could clear the way for the Federal Reserve to keep cutting interest rates in hopes of helping the slowing job market.

On Friday, the S&P 500 rose 53.25 points, or 0.8%, to 6,791.69. The Dow Jones Industrial Average rose 472.51 points, or 1%, to 47,207.12. The Nasdaq Composite rose 263.07 points, or 1.1%, to 23,204.87.

The Russell 2000 index of smaller companies rose 30.81 points, or 1.2%, to 2,513.47.

For the week, the S&P 500 gained 127.68 points, or 1.9%. The Dow was up 1,016.51 points, or 2.2%. The Nasdaq rose 524.89 points, or 2.3%.