If it does, that will be the first meeting where the Fed hasn’t hiked rates in more than a year.

The wide expectations among traders is that the Fed will hold interest rates steady at its meeting next week.

She says rates could climb higher than Wall Street expects and stay high for longer than investors are forecasting because inflation has remained too stubbornly high. “This is the market thinking we’re going to muddle along and then the Fed is going to get out of the driver’s seat: The Fed is going to cut rates, and we’re going to power into 2024,” Agati said. But she is concerned by how high the stock market has climbed, driven in particular by just a small handful of stocks. She’s expecting only a modest recession, not a deeply painful one like the downturns following the 2007-08 financial crisis and the 2020 onset of the COVID pandemic. I don’t want to be dramatic and say a day of reckoning is coming, but there will be a wakeup call.” “I can’t tell you precisely when this recession will come to roost, but it feels likes it’s coming,” said Amanda Agati, chief investment officer of PNC Asset Management Group. The banking industry’s turmoil has also caused banks to make it tougher for customers to get loans, which adds more stress to the economy. banking failures since March, high interest rates have also pushed the manufacturing industry to shrink for months. A stronger-than-expected report on hiring last week raised hopes that the economy can slide through its troubles without a recession, but many other areas have already begun to crack.īesides helping to cause three-high profile U.S. That means the big question on Wall Street is whether inflation will come down quickly enough for the Fed to take it easier on interest rates before high rates force the economy into a recession. The highest rates since 2007 have helped inflation come down some, but it’s still above everyone’s comfort level. So far, the economy has been able to avoid a recession even though the Fed has jacked rates up at a furious pace for more than a year in hopes of driving down inflation. The Federal Reserve will also announce its latest move on interest rates. government releases the latest monthly updates on inflation at the consumer and wholesale levels. More fireworks could arrive next week when the U.S. This week has been relatively quiet for markets, even with the benchmark S&P 500 index gaining enough Thursday to close 20% above its October low, entering a new bull market. Ski resort operator Vail Resorts dropped 7.1% after reporting weaker results for the latest quarter than analysts expected. Exxon Mobil slipped 0.7% and was one of the heavier weights on the market. GM rose 1.1%.Įnergy stocks fell along with the price of crude oil.

Tesla was at the front of the market, rallying 4.1% after announcing General Motors electric vehicles will be able to use much of its extensive charging network beginning early next year. The S&P 500 rose 4.93, or 0.1%, to 4,298.86 to cap its fourth straight winning week. NEW YORK (AP) - Stocks inched higher Friday to close out a listless week for Wall Street, as investors wait for next week’s slate of potentially market-moving updates.

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