Stock Market Desperately Needs Fed Boost This Week
After four weeks of losses, the U.S. stock market needs something to change and fast. The Dow, Nasdaq, and S&P 500 have all fared poorly recently, and the upcoming Fed decision could help.
The U.S. Federal Reserve is going to make a rate decision on Wednesday this week, which could benefit the floundering stock market. For the past four weeks, the major indices have all trended down, losing all the gains they made during the November elections.
The Nasdaq Composite lost another 0.26% on Monday morning once the stock market opened. However, the Dow Jones climbed 0.60% today, and the S&P 500 is up by 0.28%. These numbers should not be taken as indication of a changing trend but rather a small correction coupled with hope that the Fed will make a helpful rate decision this week.
Will the Fed Change Interest Rates?
The expectation at the moment is that the Fed will not alter interest rates as well, keeping to the current rate to protect from further inflation. Inflation is still high and rising but not rising as rapidly as it did earlier in the year. While that bit of news that came out for the Consumer Price Index report is promising, it is likely not going to be enough to sway the Fed to change the interest rate for now.
The stock market will likely have to find its salvation through another means, as President Donald Trump has rapidly changed his policy on tariffs and caused the market to trend down. That bearish trend is likely to continue as long as tariffs are being levied against foreign countries and as long as tariff policy continues to fluctuate. Once the dust settles on tariffs, then the stock market could start to see a return to normal.
Key Stocks to Watch
Several stocks will drive the market more than most, and these include Nvidia (NVDA) in the tech sector. This stock is down 2.55% today, starting off the week poorly, although the annual GTC conference coming up could help their situation.
Tesla (TSLA) is down as well, by 5.88%. The means it has lost most of its recent gains and is continuing a long downward trend that was only briefly Boyed by the November elections.
PepsiCo (PEP), on the other hand, has gained 1.77% as consumers worry more and more about the price of key goods. If tariffs affect electronics, that could push consumers to focus on the necessities, and food stocks like PepsiCo could continue to do very well.
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