Core Viewpoint - The upcoming Federal Reserve meeting is expected to result in a 25 basis point rate cut, but the focus will be on the dispersion of views among Fed members and the accompanying economic projections [2][3][5]. Market Reactions - The market is likely to see a steeper yield curve as the Fed cuts interest rates, with expectations that short-term yields will decrease while long-term yields remain elevated around the 4% mark [6][7]. - Recent sell-offs in the bond market may indicate shifting expectations regarding the Fed's future rate cuts, with concerns about the next Fed chair potentially influencing market sentiment [8][9]. Key Economic Indicators - The labor market will be a critical focus for the Fed, with upcoming reports such as the JOLTs report and unemployment claims being significant indicators of economic health [11][12]. - A softening labor market could lead the Fed to consider additional rate cuts, impacting overall market dynamics [13].

Stocks closed on Friday near record highs, with the S&P 500 sitting just below the 6,900 mark as a twitchy bond market looks ahead. A busy calendar will greet investors this week, with the last Fed meeting — and press conference from Chair Jerome Powell — of 2025 highlighting the action. On the corporate side, we have Wednesday circled, with Oracle (ORCL) and Adobe's (ADBE) quarterly results and Broadcom (AVGO) and Costco (COST) headlining the proceedings on Thursday. The economic calendar will continue ...