For investors, the last trading week of July will be about one thing: the Fed. And that should cause plenty of volatility. On one hand, the strong dollar and international issues like Brexit should make the Federal Reserve keep rates where they are. On the other hand, the relatively strong U.S. economy and rising inflation could give the Fed plenty of firepower to raise rates. As a result, volatility should be high.
Adding to the instability will be the week’s data. The last week of the month has plenty of important metrics. If the Fed doesn’t raise rates and the data is strong, it could signal a rate hike is coming sooner than later.
Earnings could send the market into a tizzy. We’re in the thick of earnings season and so far reports have gone pretty well. Any swift changes to that bullishness could derail stocks recent record-breaking highs.
At the end of the day, the last week of July could be a doozy for investors.