Major averages closed yesterday flat to lower on mixed volume near the low end of their trading range. The NASDAQ Composite, in particular, gapped up at the open but reversed to close slightly down -0.2% on the day.
The Fed FOMC announcement is expected on Wednesday at 2:00 p.m. EDT. Conventional wisdom currently indicates that the Fed is expected to "tee up" a rate increase in December. While that may or may not be the case, the Fed may likely use dovish words to counter any indications of a single, upcoming rate increase as they do not want to upset markets, especially with elections next Tuesday.
On Thursday, the Bank of England will make an announcement about the future of interest rates. They are likely to take a more hawkish stance given that the British pound was the worst performing currency post-Brexit. Higher rates tend to strengthen a currency.
On Friday, the jobs report is scheduled to be released at 8:30 a.m. EDT. The current US expansion is now 87 months long, the 4th longest expansion ever, though also perhaps one of the weakest as it has been artificially propped by quantitative easing measures which started in late 2008, post the financial credit bubble meltdown.
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