Day Ahead: Top 3 Things to Watch

Investing.com – Here’s a preview of the top 3 things that could rock markets tomorrow.

1. Fed Minutes, Powell on Watch

The September Federal Open Market Committee meeting minutes and Fed Chairman Jerome Powell’s participation in a Kansas City Fed event will likely be the main focus ahead of a widely-expected Fed rate cut later this month.

Powell’s at 11:00 AM ET (15:00 GMT) and the at 2:00 PM ET will be closely watched for clues into the central bank’s thinking.

In its September meeting, the FOMC delivered what many saw as a hawkish cut as the central bank signaled that it was unlikely to adopt a prolonged period of easing.

The odds of Fed rate cut have cooled recently, but remained high, with 77% of traders expecting a cut later this month, according to Investing.com’s .

“We expect one more 25 basis point rate cut, most likely in October, as the FOMC navigates a U.S. economy that is slowing and facing elevated downside risks,” Nomura said in a recent note to clients.

2. Labor Market Data Due

Beyond monetary policy, labor market data will also garner attention following last week’s weaker-than-expected, but solid, employment report.

The Labor Department will release its August Job Openings and Labor Turnover Survey (JOLTs) at 10:00 AM ET (14:00 GMT).

On average, economists expect that fell to 7.19 million in August from 7.22 million the prior month, according to forecasts compiled by Investing.com.

3. Crude Inventories to Build for Fourth-Straight Week?

The petroleum report, due Wednesday, will likely provide a timely distraction as crude prices have pressured by rising fears that U.S.-China trade talks set for later this week are unlikely to lead to meaningful progress.

The EIA is expected to report a build in crude stockpiles of 1.41 million barrels last week. That would mark the fourth-weekly build in crude stockpiles.

U.S. weekly production, which remains at a record of 12.4 million barrels a day, will likely also attract attention.

fell 0.2% to settle at $52.63 a barrel.

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