Investing.com -- Stocks were weighed down by rising bond yields on Thursday as growth stock investors feared the Federal Reserve's message that interest rates would remain higher for longer.
The Fed held rates steady this week but signaled it might raise them one more time this year and keep them elevated for longer than anticipated as it tries to slay inflation. The goal is to get annual inflation back to the central bank's 2% target, though it remains higher amid a strong labor market and resilient consumer spending.
Fed officials also signaled two rate cuts next year, half the number they anticipated in their last round of forecasts in June.
Higher energy costs -- with the price of a barrel of oil creeping higher toward $100 amid production cuts -- could complicate the Fed's inflation-fighting efforts.
Next week's economic data include an estimate for third quarter gross domestic product and the latest reading on the personal consumption expenditure index, the Fed's preferred inflation gauge.
Here are three things that could affect markets tomorrow:
1. Manufacturing index
The S&P Global U.S. manufacturing index is due out tomorrow at 9:45 ET (13:45 GMT). Analysts expect a reading of 48. The services index comes out at the same time, with an expected reading of 50.6.
2. Auto worker strike
The United Auto Workers has said it will expand its strike to more locations at noon on Friday if it doesn't reach an agreement on a new contract with Detroit's Big Three auto makers. Workers have already been striking at three plants since last Friday.
3. Shutdown deadline
Congress has just a week to go before a Sept. 30 deadline to pass at least a temporary measure to fund the federal government and avert a shutdown on Oct. 1. As of Thursday, House GOP members were not in agreement on a defense spending bill and a stopgap funding bill had not been finalized.