Wall Street faces a pivotal week as the Federal Reserve prepares to announce its latest interest‑rate policy on Wednesday at 2 p.m. ET. According to NYSE insider Jay Woods, traders should brace for heightened volatility. Recent data shows persistent inflation, and Fed‑funds futures indicate roughly a 90% chance of a quarter‑point hike, leaving the target range at 3.5%‑3.75%. Woods said, “The market is priced in— all eyes are on the Fed.” He added that a surprise could come if the central bank holds rates steady. “If we hike, I think the table is set for a rally. If we don’t hike, watch out—we could see a sharp sell‑off.” The S&P 500 has been trading in a narrow band, with Woods watching the 7,600 level—the index’s 50‑day moving average—as a critical technical point. The index recently tested that level and held, but then formed a lower high. With the 10‑year Treasury yield near 5% and oil prices rising, Woods noted the market lacks earnings‑driven support. “Momentum looks lower,” he said, emphasizing the focus on the 7,600 mark and the Fed’s announcement. Outside the Fed, Woods highlighted two stocks to watch. Lennar, down more than 20% this year and near a 52‑week low, has fallen after 11 of its last 12 earnings reports, with an average post‑earnings decline of 4.7%. The homebuilder is scheduled to report earnings after the bell on Sept. 16. The second name is Corning, which remains in a long‑term uptrend despite recent pressure. Woods identified $145‑$147 as “ultimate support” and suggested it could be a good entry point on a sell‑off. The stock is up over 66% year‑to‑date, driven by its fiber‑optic technology that is increasingly vital for AI data centers. Corning recently signed a multibillion‑dollar partnership with Verizon to expand fiber infrastructure, following similar deals with Amazon, Meta, and Nvidia earlier this year.
