In This Story
The Christmas holiday is fast approaching, and the festive spirit is in full swing as people gear up for celebrations, shopping sprees, and family reunions. While only a few companies are set to release earnings reports this week, the stock market is bracing for a potentially pivotal moment. This week, the Federal Reserve is expected to announce whether it will lower interest rates—a decision that could significantly influence the economic and financial landscape heading into 2025.
Suggested Reading
Why generative AI is in its ‘Angry Birds’ phase, according to DataStax CEO Chet Kapoor
Suggested Reading
With this critical development on the horizon, let’s explore what lies ahead in the world of the stock market this week.
Micron, Nike, and others will report earnings
This week will be relatively lighter for earnings reports. Among the key highlights, Micron Technology (MU+3.85%) is set to announce its quarterly results on Wednesday after the closing bell. On Thursday, Accenture (ACN-0.36%) will unveil its financial performance before the opening bell. Later that day, both Nike (NKE-0.83%) and FedEx (FDX+0.06%) will take the spotlight, with their earnings reports scheduled for release after the market wraps up.
Will the Fed slash the interest rate?
The week ahead is packed with critical macroeconomic data releases, beginning Tuesday with the U.S. retail sales report for November, which will provide insights into consumer spending trends. Additionally, the Home Builder Confidence Index for December will be unveiled, shedding light on the outlook for the housing market.
Wednesday takes center stage as the Federal Open Market Committee (FOMC) announces its highly anticipated decision on interest rates. The CME Group’s FedWatch tool, which measures market expectations for Fed fund rate changes, expects a 25-basis-point rate cut. Following the decision, Federal Reserve Chair Jerome Powell will speak on the economic outlook and monetary policy trajectory.
Thursday will feature the release of the weekly initial jobless claims data, and along with that, the latest figures on existing home sales will be posted.
The week concludes on Friday with the release of the Personal Consumption Expenditures (PCE) Price Index, a key measure of inflation tracking changes in consumer spending on goods and services. Additionally, the consumer sentiment report for December will be unveiled.
