As the unemployment rate has reached another historic low in May, investors will expect the Fed to deliver another promised interest rate hike in June, but the larger question is will the Fed hike rates only three times in 2018, or more?
Tech stocks remained highly resilient in the face of scheduled interest rate hikes in the last few weeks, but overall, the equities markets in the U.S. may not break the sideways trading cycle this week as, once again, there is a good probability that the Fed will limit any upside potential by raising the interest rate in June.
To sum up, expect volatility to spike on Wednesday, but the calmer price action will likely prevail this week as we will get hardly any market-moving corporate earnings reports.
Check out last week’s Market Glance here in which investors worried that the strengthening dollar may hurt American exports and cause earnings to drop for several key U.S. corporations.
