The forthcoming week in the financial markets is set to be dominated by the Federal Reserve's decision on interest rates and the initial public offering (IPO) of online grocery shopping company, Instacart.
Instacart is expected to begin trading on the NASDAQ Marketsite under the symbol CART. This comes after the company disclosed its target valuation of up to $10 billion last week, following Arm Holdings' successful market debut. The IPO announcement arrives amidst a mixed week for stocks, with the Dow Jones Industrial Average being the only benchmark to post a slight gain.
The Federal Reserve will announce its decision on interest rates on Wednesday, September 20, following hotter-than-expected inflation reports last week. Consumer prices jumped 3.7% from the same time last year, exceeding expectations, while inflation at the wholesale level rose 1.6% annually. According to the CME's FedWatch Tool, 98% of the market expects policymakers to hold rates steady.
Meanwhile, investors will continue to monitor the ongoing United Auto Workers (UAW) strike against Ford (NYSE:F), General Motors (NYSE:GM), and Stellantis (NYSE:STLA). The strike, which began on Friday, could potentially cost the economy nearly $6 billion over just nine days. AutoZone (NYSE:AZO) is slated to report earnings after the bell on Tuesday, September 19 and may provide details on the impact of the strike.
In other market news, changes are due in the S&P 500 and S&P 100 on Monday, September 18. Blackstone (NYSE:BX) and Airbnb are set to replace Lincoln National (NYSE:LNC) and Newell Brands in the S&P 500, while Deere (NYSE:DE) & Co will replace Walgreens Boots Alliance (NASDAQ:WBA) in the S&P 100.
On the same day, Israeli Prime Minister Benjamin Netanyahu is reportedly meeting with Elon Musk amid Musk's criticism of the Anti-Defamation League (ADL).
Later in the week, on Thursday, September 21, Oracle (NYSE:ORCL) will commence CloudWorld in Las Vegas. CEO Larry Ellison hinted at significant updates during the event in last week's earnings call. This follows a challenging period for Oracle, with shares suffering after the company's forecast fell short of some estimates.
On Friday, September 22, Blue Apron will conclude its run on the New York Stock Exchange and join the Nasdaq on September 25. The U.S. Manufacturing Purchasing Managers Index data is also due for release on Friday.
In summary, the coming week promises significant developments in both the stock and financial markets. Investors will be closely watching the Federal Reserve's interest rate decision and monitoring the effects of the ongoing UAW strike. Meanwhile, Instacart's IPO could potentially set a new tone for tech companies going public.
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