Inflation Data and Earnings in Focus as Fed Meeting Looms
Investors will be closely watching US economic data this week as inflation figures are set to play a key role in shaping expectations for the Federal Reserve's September policy decision. The Consumer Price Index (CPI) and Producer Price Index (PPI) reports, due before the Fed's meeting on September 15-16, assume greater importance after a stronger-than-expected employment report for August.
US employers added 162,000 jobs during the month, exceeding economists' expectations. The strong jobs report has increased market expectations for a September rate hike. Investors will scrutinize the CPI and PPI figures to see if inflationary pressures are easing or persisting.
Corporate earnings will also provide another important focus for investors this week, with results from technology companies like Oracle and Adobe closely watched for clues about corporate spending and demand for technology-related products.