3 Dates That Could Influence the Stock Market in October
If you've been following the stock market even casually this year, you know there's one factor above all that's been roiling Wall Street: inflation.
Inflation is near a 40-year high, clocking in at 8.3% year over year in August, and those persistent price increases have led the Federal Reserve to raise interest rates faster than it has in at least a generation. On Sept. 21, the Fed raised the federal funds rate another 75 basis points, its third such hike in a row. That, along with bearish commentary from Fed Chairman Jerome Powell, sent the stock market into free-fall to close out September. In just eight trading sessions from Sept. 20 to Sept. 30, the S&P 500 sank 7%. Higher interest rates tend to be bad for stocks, both because they make future earnings less valuable and make bonds more attractive by comparison.
In October, it shouldn't come as a surprise that any news that could influence the Fed's future rate hike plans is likely to move the stock market. Though it won't deliver its next interest rate decision until early November, there are three events in particular that investors will want to watch this month.
Source Fool.com
