It’s true. This is going to be a big week — BUT it’s building up to be a really big week.
So what’s going on? Short answer: everything.
Of course, the Fed’s announcement on interest rates this Wednesday ranks pretty high on the “big week” list. It would be number one if everyone didn’t already know what the Fed is going to do. Oh, yeah — they’re expected to ease rates by 25 basis points. If they cut more than that (don’t bet on it), then it’s not just a big week — it’s a huge one.
Next up, the government shutdown drama. Funding for the federal government runs out at 12:01 a.m. on Saturday, November 1, unless Congress reaches a deal. If lawmakers fail to act, hundreds of thousands of federal employees will be furloughed, national parks and museums will close, and essential services — from air traffic control to food inspections — will operate on skeleton crews. In other words, a whole lot of “stuff” is going to hit the fan.
However, should there be a last-minute, 11:59 p.m. Friday settlement both sides agree on, then this week instantly becomes a “really, really big” week.
Already happening, President Trump is in Asia and scheduled to meet with President Xi Jinping of China to hammer out a trade deal and reduce tariffs. Will it actually happen? Probably not — but we’ll still get the usual: “Talks went great, lots of progress, we get along well, we’re very close to a HUGE deal,” etc. If there is any kind of breakthrough, it’ll make this a really REALLY big week.
All of these things — and more — are coming due at once. Slightly overshadowed is the November 4th election day — governors, local races, and a headline-grabbing mayoral contest in New York City. The Democratic Party could take a sharp turn left. Should that actually happen, this week will go down as a major turning point in American politics. Oh my.
Financial markets are soaring — new highs across the board. If even half of the above plays out favorably, will the markets “explode” higher? They might. For now, Wall Street seems to be betting on a whole lot of good news.
