Apple's event, small business optimism, Congress returns: 3 things to watch

Investing.com -- Stocks were rising on Monday, led by tech stocks on expectations the Federal Reserve will hold off on another interest rate increase at its meeting later this month.

Investors have been hoping the Fed was near the end of its rate tightening after moving rates from zero to above 5% since early 2022. While Fed officials have indicted they could pause in September, they have signaled that doesn't mean there won't be any additional rate hikes. It all depends on what the data show, they say.

Recent data has shown a slowing in inflationary pressure and labor market tightness, and more data this week could add to that. The consumer price index is due out on Wednesday, and the producer price index is due out Thursday. 

Futures markets are putting the probability of a rate increase in November in the high 40-percentage range, with expectations for a rate pause currently a little higher than 50%.

Here are three things that could affect markets tomorrow:

1. Apple event

Apple Inc (NASDAQ:AAPL) is kicking off a live event at 13:00 ET (17:00 GMT) at which it is widely expected to unveil its new iPhone 15s, complete with new features and perhaps a slightly higher price on the Pro models than the previous model. Analysts are also looking for updates on Apple Watches.

2. Small business optimism

The NFIB small business optimism reading for August is due out at 6:00 ET. Analysts expect a reading of 91.6 versus 91.9 in the prior reading.

3. Congress returns

Lawmakers have returned to Capitol Hill after a summer break with a looming deadline to fund the federal government past Oct. 1. Some lawmakers have threatened a shutdown, but others are working to pass at least a temporary funding measure until a full-year spending bill can be approved. In addition, Sen. Majority Leader Chuck Schumer hosts the first of his meetings about artificial intelligence on Wednesday, featuring appearances by several CEOs in the tech industry.