Wall street braces for a volatile September due to Fed meeting and market data
Live MintU.S. stock investors are bracing for a potentially volatile September as the market faces key economic data reports, a Federal Reserve meeting and worries over a possible government shutdown during a month of historically muted equity performance. A hotter than expected employment reading for August would likely revive inflation concerns, while a much weaker number could fuel worries that the Fed’s interest rate hikes are starting to crack the economy, Janasiewicz said. The Fed’s monetary policy meeting on Sep. 20 stands as another potential source of volatility: Friday’s speech from Fed Chairman Jerome Powell in Jackson Hole fueled expectations of another rate increase this year, though a move in September was seen as less likely. The S&P 500 rallied despite the regional bank crisis in Feb., concerns over a debt default in June, and fear that the Federal Reserve's most aggressive pace of interest rates hikes since the early 1980s will push the economy into a recession and derail corporate earnings growth.