Volatility could be the big story again for markets in the week ahead, after a wild week for both stocks and bonds. September and the third quarter come to a close and stocks are higher so far for the quarter, even after the turbulence.
"I think October will be true to itself, which is a very volatile month. October’s volatility is 36% higher than the average of the other 11 months of the year,” says CFRA's Sam Stovall. “Volatility is higher and you have a greater number of pullbacks, corrections and bear markets that either start or end in the month. It is a seismic month.”
In the coming week, the Federal Reserve stays front and center again, with Chairman Jerome Powell testifying before Congress and a host of other Fed officials speaking at events. There is some data including durable goods, PCE inflation data and ISM manufacturing. Congress must address an appropriations bill in the coming week or the government could shut down by Friday.
