Here are 3 economic events due this week that are likely to be major market movers. To stay ahead of the market, follow TipRanks’ Economic Calendar regularly and never miss an economic event.
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FOMC Meeting/Interest Rate Hike – Wednesday, 2/1/2023 – The Federal Reserve’s first Federal Open Market Committee (FOMC) meeting this year is scheduled to commence on Tuesday, January 31 and will last through Wednesday, February 1. The central bank is expected to announce its policy decisions on the final day of the meeting. As inflation shows strong signs of slowing down, the central bank is largely expected to slow down its pace too and raise interest rates by just 25 basis points. However, in the hours leading up to the announcement, the markets are expected to be volatile. If there is any surprise during the announcement, the market is likely to swing to the positive or negative end sharply.
OPEC+ Meeting — Wednesday, 2/1/2023 — Importantly, the OPEC+ meeting is another market-moving event that investors are keeping their eyes on. Representatives of all the members of the Organization of the Petroleum Exporting Countries and allies, including Russia (OPEC+), are scheduled to meet virtually on February 1. It is widely speculated that global oil producers will keep production unchanged. Any surprises on this front will move the market. For instance, if oil production is increased even marginally, prices of oil may go down, pushing the brakes on global inflation a little harder. This would be good news for many stock portfolios as investors rejoice lower inflation.
Nonfarm Payrolls and Unemployment Rate — Friday, 2/3/2023 — Investors are also awaiting data on nonfarm payrolls added in January. The number of nonfarm jobs added to the economy is expected to have reduced to about 185,000 in January from December’s 223,000. Also, the unemployment rate, which had fallen to 3.5% in December, is expected to have marginally gone up to 3.6% in January. This could be good news for the economy because one of the Fed’s goals is to ease the job market and raise the unemployment rate enough to bring down wage inflation, a key factor driving overall price increases. If the expected numbers are achieved, this would indicate a slowing labor market, which might lead to a stock market rally.
