Day traders closely monitor news events that can shake up the markets and spark trading opportunities and risks. This podcast covers five major events that move markets: Federal Reserve interest rate decisions, the monthly jobs report, inflation data, GDP announcements and geopolitical crises.
The Fed’s rate decisions influence markets through their impact on interest rates, the dollar and inflation expectations. The jobs report signals the health of the labor market and economy. High inflation can force the Fed’s hand and rattle markets. Strong economic growth boosts markets while weak GDP stokes fears of recession. Geopolitical turmoil introduces uncertainty and risk, often prompting sharp price drops as traders rush to safety. Savvy day traders stay on top of expectations for each news event by checking futures markets ahead of time. Be ready to act quickly as computer trading causes volatility once the news hits. Even small surprises can spur big market swings, which traders can take advantage of if prepared. Don’t assume initial reactions will last, however. Once the dust settles and emotions fade, the impact could potentially lessen.
Do research to know what details to focus on for each news report.
There is a substantial risk of loss in futures trading. Past performance is not indicative for future results. Trade only risk capital.