Producer prices, Fed minutes, Fed speakers: 3 things to watch

Investing.com -- Stocks are rising after dovish comments from a few Federal Reserve officials this week is fueling hopes the central bank is nearing the end of its interest rate increases.

The Fed has steadily raised rates since early 2022 from near zero to over 5%, and had signaled in September another rate increase could be in the cards by the end of the year. But Atlanta Fed President Raphael Bostic told a gathering of the American Bankers Association on Tuesday that he doesn't think the Fed needs to raise rates again. Current policy is sufficiently restrictive, he said, and the ultimate effect of the rate increases so far has yet to become fully known.

Treasury yields, which have been rising in recent weeks, gave back some of those gains. The 10-year yield eased to 4.653%. On Monday, Fed officials said the recent jump in bond yields could achieve the same mission as the Fed raising rates.

Futures traders are putting a nearly 90% probability on the Fed holding rates steady when it meets again in November. Inflation data later this week could factor strongly in that decision.

Here are three things that could affect markets tomorrow:

1. Producer prices

The week's first big inflation report comes out Wednesday at 8:30 ET (12:30 GMT). The September producer price index is expected to rise 1.6% for the year, and 0.3% from August, while core PPI is expected to rise 2.3% for the year and 0.2% for the month.

2. Fed minutes

The minutes from the Fed's September meeting, when it left rates unchanged and issued new economic projections, is expected out at 14:00 ET. Analysts will be scouring it for hints about what Fed policy makers are thinking heading into the final months of the year.

3. More Fed speakers

There will be more appearances by Fed officials on Wednesday, including Gov. Christopher Waller, Atlanta Fed President Raphael Bostic, and Gov. Michelle Bowman.