Stocks could face more turbulence in the week ahead, as investors weigh the spread of the omicron Covid variant and the potential for Federal Reserve interest rate hikes next year. Stocks initially surged after Wednesday's announcement from the Fed that it was speeding up the end of its bond buying program to March. The Fed also issued a forecast with three quarter point hikes to the fed funds rate next year.
But by Thursday, tech turned sharply lower and the market slumped. Friday was also a very volatile day. Strategists are unsure whether the market will be able to gain into the year-end because of the volatility, but they have not ruled out a Santa rally.
There is some data on the calendar, including consumer confidence and home sales. The personal consumption expenditure inflation data, watched closely by the Fed, is reported on Thursday. The stock market is closed on Friday for the Christmas holiday, and then investors have one more week to see how 2021 shapes up for markets.
