The presidential debate and OPEC could make for volatile markets in the week ahead, while a rush of consumer, manufacturing and other data may reveal whether the economy is really beginning to struggle.
Big for markets could be the first U.S. presidential debate Monday and OPEC’s meeting in Algiers through the middle of the week.
After holding off on a September rate hike last Wednesday, the Fed is keeping itself in the market’s sights, with Fed Chair Janet Yellen testifying and more than a dozen appearances by Fed regional presidents and governors in the coming week. Yellen testifies before the House Financial Services Committee on regulation and supervision Wednesday.
“I still feel the markets have not priced in a potential Trump victory. I think most people in the market think she’s going to win, and if you look at the electoral college map, you can still make that case even though it’s tightened. I think the market would have to focus on what it means if he were to win,” said Greg Valliere, chief global strategist at Horizon Investments. “First and foremost, the market has to care about uncertainty. He changes his positions with regularity.”