As September progresses, markets remain vigilant with a mix of corporate events, critical economic data, and political developments. In what is traditionally a volatile month for stocks, investors are on edge, paying close attention to signs of inflation and consumer sentiment across major economies. Here’s a look at the key areas to watch this week.
Apple’s iPhone 16 Launch
On Monday, Apple took center stage with the highly anticipated launch of its iPhone 16 lineup. The new models, featuring the A18 Pro chip and enhanced AI-powered camera systems, are expected to drive consumer interest and tech stock momentum. The iPhone 16 Pro and Pro Max will showcase significant upgrades, including 4K120 fps video recording and 48MP Fusion cameras, making it one of the most advanced iPhone releases yet. Given Apple’s influence on tech markets, the launch could have broader implications for investor sentiment across the tech sector.
Economic Data: U.S. Inflation and Consumer Sentiment
- U.S. Consumer Price Index (CPI): Scheduled for release on Thursday, September 11, the U.S. CPI data will be crucial for gauging inflation trends. Market expectations are for headline inflation to ease to 2.6% YoY, while core inflation remains steady at 3.2%. With the Federal Reserve monitoring inflation closely, this report could impact rate cut expectations later this month.
- Additionally, U.S. wholesale inventories and the New York Fed 1-year inflation expectations will provide further insights into inflationary pressures and how consumer prices are evolving.
Potential Rate Cuts by the ECB and the Federal Reserve
- European Central Bank (ECB): On Thursday, September 12, the ECB is widely expected to cut interest rates by 25 basis points. With Eurozone inflation down to a three-year low of 2.2%, the ECB will likely focus on easing monetary policy to support growth. Any downward revisions to growth or inflation forecasts may accelerate further cuts.
- Federal Reserve: Alongside the CPI data, markets will closely monitor U.S. wholesale trade sales and updates from the University of Michigan’s consumer sentiment survey later this week. These reports will help gauge the outlook for potential rate cuts by the Federal Reserve as markets expect further monetary easing later this year.
Political Spotlight: The First U.S. Presidential Debate
A key political event this week is the first U.S. presidential debate, set for Wednesday, September 10. The debate between Donald Trump and Kamala Harris will be highly anticipated, with investors watching closely for any market-moving insights into future economic policies and political strategies from the two leading candidates. As the 2024 election campaign ramps up, this debate could influence market sentiment, particularly regarding fiscal policy, taxation, and economic reform.
Cautious Look Ahead
This week will bring a mix of market-moving events, including Apple’s product launch, inflation data from the U.S. and China, and the ECB’s rate decision. With consumer sentiment, inflation, and the political climate all remaining central themes, any surprises could send ripples through global markets. Investors should stay prepared for volatility as key data points and political events roll in.
Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.
