Markets are calibrating to the new world of a less easy Fed. Traders will be watching for those types of Fed-related moves Friday, amid the activity generated by the quadruple expiration of futures and options, and re-balancing of the S&P 500 and Nasdaq. Facebook will join the S&P on Friday afternoon.
There is also third-quarter GDP on Friday at 8:30 a.m. ET. It is the third look at the number, which has risen to a surprising rate of 3.6 percent. Just several weeks ago it was expected to be 2 percent.
“If it’s revised at all I think it would be marginal,” said Ward McCarthy, chief financial economist at Jefferies. “What matters is we’ve seen progressively faster GDP growth this year—1.1 [first quarter] to 2.5 [second quarter] to 3.6, and right now I’m at 2.7 for the fourth quarter. I’d be very surprised if that’ didn’t figure into the Fed’s thinking.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.