Why Oct. 29 Could Be a Big Day for the Stock Market

Core Viewpoint - The Federal Reserve is widely expected to cut interest rates by 25 basis points at its upcoming meeting on October 29, which could lead to significant market volatility depending on the Fed's decisions and communications [5][6][7]. Market Expectations - Investors anticipate a 94.6% chance of a 25 basis point rate cut, with only a 5.4% chance of no cut at all, indicating a strong consensus on the expected outcome [6]. Potential Market Movers - The following factors could influence market movements post-Fed meeting: - Rate Decision: Any deviation from the expected 25 basis point cut could surprise investors and impact the market negatively [8]. - Economic Projections: The Fed's economic projections will not be released in October, which may limit market reactions based on economic outlook [8]. - Statement Release: The language used in the FOMC statement can significantly affect market sentiment, as even minor wording changes are closely analyzed [8]. - Press Conference: Fed Chair Jerome Powell's comments during the press conference following the meeting can also sway market reactions, regardless of the anticipated rate decision [8].