Online trading brokerages have made the stock market more accessible to the public. But each week has some factors or circumstances that affect the markets. Here’s what you could expect this week.

All Eyes on the Fed Meeting

The US Federal Reserve’s meeting this week to decide rate hikes would be a crucial factor determining the movement of the stock market this week. The expectations of a rate cut were already fueled by the policymakers, and the market as a whole is hoping for that. If that fails to happen and rate hikes are announced, stocks could be heading for a selloff as per this Nasdaq article.

A few reports are coming up that could give a better idea of the stocks to invest in. The Empire manufacturing survey and the NAHB home builder survey on Monday are worth watching out for.

Trade War Expands Beyond the US and China

The trade war is no longer restricted to just the US and China. The United States’ withdrawal of India’s Generalized System of Preferences (GSP) has resulted in India retaliating with tariffs on 28 American imports among which are almonds, walnuts and apples.

Tariffs Affecting Home Goods Retailers More

As per this CNBC article, the US-China trade tariff war could hurt retailers more. And if retailers think that they can offset the increased costs brought about by the trade war by hiking prices of their products, consumers will, in all probability, reject it. The tariffs haven’t significantly affected US consumers yet. As per government reports mentioned by the CNBC article, retail sales actually rose in May despite the fact that the US increased the tariff rates on Chinese goods worth $200 million, from 10% to 25%. Home goods retailers were largely affected by this.

There could be further tariffs. President Trump has been warning on tariffs on a further $300 billion-worth Chinese goods. That would account for nearly the whole of imports from China to the US. Apparel stores could particularly be hit. Smaller retailers are among those that would really have no option but to transfer the increased costs from the tariffs directly to their customers, as Worldwide Enterprises CEO Rogers Kniffen estimates. These stocks are likely to be affected more. But Kniffen reports that Walmart ($WMT) is making moves so customers don’t end up having to pay more for their day-to-day items.


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