Really? Not another big week. Well, at least it’s this week’s big week. Why? This week brings a slew of financial news and announcements. Since markets are traditionally slow during the summer, this week may be the only chance of substantial movement and a chance to pay for the vacation you promised the family for August.
So what’s going on? Monthly consumer confidence will have been announced by press time, but it’s not the big thing anyway. The rest of the week will include the 1st glance at the 2nd quarter GDP and the FOMC decision on interest rates (more below). Personal income and spending, University of Michigan’s consumer index, and, kicking off August, non-farm payrolls with the unemployment rate. Throw in 161 earnings releases, including Meta, Microsoft, Apple, and Amazon. Oh, before I forget, August 1st is also the deadline President Trump set to have all global tariffs in place. Uh huh.
With the Fed about to announce its latest decision on interest rates, a new “wrinkle” has become front and center. Specifically, the relationship (or non-relationship) between President Trump and Fed Chair J. Powell. The Fed Chair is in a “pickle.” If he eases interest rates, he would appear to have caved into Trump’s unrelenting pressure to lower rates and reduce the Fed’s independence. If he doesn’t ease rates (gasp, raise them), he will be the subject of Trump’s wrath and fury, plus probably a lawsuit as well (cost overruns on new Fed headquarters). Will Powell bend, or even quit? That’s why this is such a big week. Drama.
Another tariff deadline arrives August 1st. With the EU tariff deal completed, a great deal of the “heavy lifting” is out of the way. Will there be a rush by late-waiting countries to get a deal done? Again, a BIG week is unfolding.
So what happens when the “Big Week” is over? Clarity (?) on the Fed Chair and interest rates, tariffs largely settled and, gasp, working. Surprisingly, the economy hasn’t cratered. Not to be a “Debbie Downer,” but all this might be priced in the financial markets. All-time highs for stocks are in. Is there anyone left to buy bitcoin (crypto)? The next big thing after all is settled will be… WILL IT ALL WORK? Yes? Maybe? No?
If it’s a no, the next “Big Week” might be discussing some “severe profit taking.” Hmmmmm!
Bill Taylor is the CEO and Chief Market Strategist at Digital Wealth News, offering expert insights on markets and asset classes. A proud Horned Frog and Texas Christian University grad, he played college basketball while there. With a strong finance background and passion for digital innovation, Bill shares thought leadership on market trends and portfolio strategy for our audience.
