"Most economists believe the Fed will cut rates at its meeting next week after recent data revealed a labor market that's been softening for longer than previously thought. While inflation also remains stubbornly above the U.S. central banks 2% target and is forecast to have risen again in August, Fed officials have increasingly expressed concern about a slowing U.S. job market."
"Stocks have reached records in large part because Wall Street is expecting the economy to pull off a delicate balancing act: slowing enough to convince the Federal Reserve to cut interest rates, but not so much that it causes a recession, all while inflation remains under control.Many things must go right for that to happen, and an encouraging signal came from a report Wednesday saying inflation at the U.S. wholesale level unexpectedly slowed in August."
Futures for the S&P 500, Dow and Nasdaq rose in premarket trading as investors awaited new U.S. labor and inflation data. Market movement will hinge on reports about inflation and unemployment benefits, two areas the Federal Reserve monitors under its dual mandate. Economists largely expect a Fed rate cut next week following signs of a softening labor market, even as inflation remains above the 2% target. Recent data show hiring slowed sharply and was lower than earlier estimates, contributing to the view that the economy must slow without tipping into recession. Wholesale inflation unexpectedly slowed in August, and Opendoor shares climbed after a CEO appointment.
Read at Fast Company
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