Schwab Center for Financial Research

A critical week lies ahead as Washington, D.C., counts down to a possible shutdown, Biden meets Xi, and market awaits key inflation data starting Tuesday. Stocks lost some traction early Monday and volatility could increase amid the data and headline focus ahead.

Wall Street's long winning streak ended yesterday as Treasury yields spiked, but things got quieter this morning on a day featuring little in the way of important data or earnings. It changes next week as investors await October Consumer Price Index data and Retail Sales.

The major indexes enter Thursday on their longest win streaks in nearly two years, but data and earnings are thin. Settlement of the actors' strike lifted studio stocks early, while investors await Fed Chairman Powell's remarks this afternoon.

Remarks by Fed Chairman Jerome Powell this morning put the focus back on Fed policy after its rate pause last week, but the spotlight turns to Disney earnings after the close. Crude hit 3-month lows today after a large U.S. supply gain, and there's a 10-year Treasury auction later.

Stocks came under pressure early Tuesday, threatening the six-day S&P 500 rally as investors contemplated a Fed speaker's hawkish tone and await more remarks from central bank officials. The 10-year yield fell slightly but remains above 4.6%, while Uber's results stopped short.

Wall Street enjoyed its best week of the year last week but an encore might be tough amid a dearth of major earnings and data. Fed speakers, including Chairman Powelll, dominate the calendar, along with earnings from Disney at mid-week. The 10-year yield bears close watching.

The benchmark 10-year Treasury yield came under additional pressure and stocks rose early Friday in premarket trading after a mild October jobs report reinforced ideas the Fed could be done with rate hikes. Wages also grew less than expected, and unemployment ticked up.

Major stock indexes extended gains and Treasury yields fell as the market baked in lower chances of future Fed rate hikes following yesterday's Fed decision to pause. Apple earnings await after the close, followed by the October jobs report tomorrow expected to show 180,000 new positions.

The S&P 500® index (SPX) rose for a third-straight day after Fed policymakers, as expected, kept benchmark interest rates unchanged.

Today's Fed rate decision is widely expected to be a pause for the second straight meeting. Questions center around the tone of Fed Chairman Jerome Powell's press conference as the market tries to determine if the Fed might be done raising rates. Friday's jobs report also looms.