Monday, August 18, 2025

Financial uncertainty and important events of September

Significant financial events are on the horizon this week. One such event is the FOMC Minutes release on Wednesday, which details the issues of debate and concessions among policymakers. This release, which occurs three weeks after the Federal Open Market Committee's meetings, is crucial for understanding potential shifts in economic policy.

Looking ahead to August 21st, we have the Jobless Claims report, but the more impactful news will arrive next week, with critical developments expected in September. This is a period where we anticipate the futures markets to fluctuate significantly. What we can expect is stability with a bullish trend, as markets calm and reflect a potential drop in interest rates in the American market. 

Regarding futures, such as the S&P 500, Nasdaq, and Dow Jones, we anticipate growth, possibly by mid-September. Investors could possibly take advantage around the middle of the third week or even the end of the second week of September. To be more specific, around September 15th or between 11th to 12th September, investors might consider buying futures in indices like S&P 500 or Dow Jones, as we expect an upward trend due to declining interest rates and a general change in America's stance towards interest.

A key date to keep in mind is September 11th, which is when the CPI Reports for the U.S. are released. This report will provide the definitive picture of what to expect on September 17th, during the FOMC Announcement, which is the Policy Statement issued at the conclusion of each meeting of the Federal Open Market Committee. Here, we expect the Federal Fund Rate to drop to around 4 points. The previous meeting on July 30th didn't show any changes, but now we expect a reduction, possibly below the current 4.25 to 4.50 range.

In summary, investors should anticipate a rise in indices from the second week of September. Until then, I recommend monitoring price fluctuations carefully. It might be wise to avoid engaging in futures until September due to the high risk of declines and corrections. Currently, we are experiencing the second consecutive day of decline starting from August 15th, and this downward trend in the S&P 500 is likely to continue. Even a minor correction could result in a dip of a minimum of 3%. Although we cannot be certain, mid-September remains a crucial period to watch. 

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