Fed Meeting Looms: Stakes High for U.S. Market amid Inflation and Job Jitters

In the coming week, investor focus will center on the Federal Reserve's two-day monetary policy meeting, as concerns mount about balancing a weakening labor market with above-target inflation. Stocks, which have rebounded recently, face renewed pressure with geopolitical tensions and shifts in investor sentiment towards safer assets.

The central bank is expected to maintain interest rates, but investors are seeking indications that future rate cuts may be forthcoming. Fed officials' projections on unemployment and inflation will be key, with economic data suggesting potential labor market softening amid stable inflation levels.

Compounding market uncertainty is President Trump's pending decision on the next Federal Reserve Chair, with current Chair Jerome Powell's term ending in 2026. Market movement will also be swayed by upcoming retail sales data and trade relations, particularly with China, influencing investor confidence and market direction.

(With inputs from agencies.)