Here are the 2 big things we're watching in the stock market in the week ahead

The week's central focus is the Federal Reserve's anticipated 25-basis-point rate cut on Wednesday, with market participants closely monitoring Chair Powell's commentary for signals on future policy, especially given the expectation of 75 basis points of cuts by year-end and his recent emphasis on slowing jobs growth over inflation. Concurrently, CrowdStrike holds its investor day on Wednesday, with its stock down 16% from July highs but still up 27% YTD, while DuPont's investor day on Thursday will detail its post-spinoff structure, highlighting its AI-exposed electronics segment, with analysts maintaining positive ratings for both firms.

Analysis

The upcoming week's market activity is primarily centered on the Federal Reserve's policy decision, where a 25-basis-point interest rate cut is widely anticipated. The crucial element for investors will be Chairman Powell's forward guidance, particularly after his recent pivot at Jackson Hole towards prioritizing concerns over slowing jobs growth above persistent inflation. This shift is underscored by dismal nonfarm payrolls data over the past three months, including a mere 22,000 jobs added in August, which outweighs the concern from an August inflation rate of 2.9%. Beyond the macro focus, two corporate events are noteworthy. CrowdStrike (CRWD) is hosting an investor day, which comes after a 16% stock decline from its July highs despite a strong recent quarter, a dislocation that prompted a 'buy' rating upgrade in the source material. The stock is still up 27% year-to-date. Concurrently, DuPont (DD) will hold an investor day to detail its forthcoming spinoff of the Qnity Electronics business, which is strategically positioned within the AI-driven semiconductor industry. DuPont's stock has been stagnant, gaining just 1.5% year-to-date, reflecting market anticipation for clarity on the post-separation corporate structure and value proposition.

Key Decisions for Investors

• Monitor Fed Chairman Powell's post-meeting commentary for signals on the future pace of rate cuts, as his emphasis on either slowing jobs growth or persistent inflation will be the primary driver of near-term market direction.
• Consider CrowdStrike's investor day as a potential positive catalyst, as the recent 16% stock price decline from its peak may present a tactical entry point for a company that recently reported strong fundamentals.
• Evaluate DuPont's investor day for specific financial projections regarding the Qnity Electronics spinoff, as clarity on the growth trajectory of this AI-exposed business could unlock value from the stock's recent underperformance.