Investors continue to navigate a triangle of inflation concerns, interest rate fears, and Middle East risks. The trajectory of oil prices is also taking some pressure off the cauldron of worries. For investors, this is a welcome respite. The easing pressure from oil prices acts as a shock absorber for the markets. At the same time, the planned state visit of the Chinese president to the US is likely casting its shadow ahead. Stock exchanges are expected to keep a watchful eye on the anticipated meeting between Donald Trump and Xi Jinping.
Dow Jones Industrial Average Index
Purchasing Managers' Index (S&P Global) in focus on Wednesday
From the perspective of the economic calendar, things should get interesting on Wednesday with preliminary Purchasing Managers' Indexes from S&P Global (3:45 PM). The indices for the composite, manufacturing, and services sectors are expected.
Following last Wednesday's Fed rate meeting, monetary policy uncertainty is likely to persist. As expected, the US central bank raised interest rates by a quarter of a percentage point while simultaneously signaling a further increase by the end of 2026.
Investors are hoping for answers regarding AI and trade issues
In the night from Wednesday to Thursday (02:00 AM), a highly anticipated meeting between US President Donald Trump and Chinese President Xi Jinping is expected. According to media reports, Xi is scheduled to land in Washington as early as Wednesday.
It is planned that both sides will discuss the topic of „Artificial Intelligence“ (AI). Representatives of both states had already consulted on the risks in advance.
According to US Treasury Secretary Scott Bessent, the trade council proposed by Trump is also to be discussed. At the same time, the tariff pause is likely to be a topic. The aforementioned pause between the two economies expires on November 10.
On Friday, last but not least, durable goods orders will move into focus (2:30 PM). The data is significant because these types of goods involve major expenditures.
Oil price (West Texas Intermediate)
