Why Wednesday?
You do know that Wednesday is a very important day, don't you? The Fed rate decision for October will be announced on that day. Expectations are that the Fed will cut interest rates by another 25 points. As such, that cut is already
factored into the prices in the stock market and therefore, that rate cut will not help or hurt either the bulls or the bears. Having said that, "if" the Fed does not cut interest rates, the market will go down even further.
In addition:
AI Overview
Due to the current government shutdown that began on October 1, 2025, major federal agencies responsible for economic reporting have suspended operations, leading private firms to fill the data vacuum.
While private data provides a temporary substitute, it is not considered a complete or authoritative replacement for official government statistics.
This means that the Fed may NOT rely on the data and as such, may play it "safe" and not do anything.
Last but not least:
- Slowing economic growth: Shutdowns immediately curb federal spending and furlough workers, with economists estimating a reduction of 0.1 to 0.2 percentage points from the national GDP for each week the government remains closed. While much of the lost output is often recovered later, some is permanently lost.
This does mean that the economy will be worse (not better) because of the shut-down, meaning less reason for people to buy stocks.
Like I said above, you truly do not have an idea of what is happening.
Even the big-in-the-know traders are uncertain about what is coming. But you know, right?
