Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research determine where and how companies may appear. Learn more about how we make money.

Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.

Markets Open After Losing Nearly 700 Points On Concerns Fed Will Keep Interest Rates High
Getty Images

What can we expect from the stock market in the week ahead? Investors will continue to digest news of recent bank collapses, and the Federal Reserve will release its next decision regarding interest rates.

Brace yourself for more ups and downs from the financial markets.

"We anticipate volatility in the near term, helped by uncertainty around Fed policy, and fears of whether banking issues are more systemic," strategists at Invesco wrote in a recent note about concerns for the financial health of Swiss bank Credit Suisse.

Looking forward, here's what market watchers will have their eyes on the week of March 20:

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Make sure your hard-earned money is protected with a Gold IRA
Gold IRAs help you protect your investments by providing the asset diversification and stability you need. Click on your state to get started.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
Start Investing Today

The Fed meeting

On Wednesday, the Federal Open Market Committee — the arm of the Fed that makes decisions about the target range of the benchmark federal funds rate — will release its decision on whether there will be an interest rate increase, and by how much, following the committee's two-day meeting.

The Fed has been hiking interest rates for a year in an effort to tamp down inflation, but those hikes have also been weighing on the price of financial assets, like stocks and bonds. The most recent interest rate hike was smaller than the increases investors grew accustomed to throughout 2022, but Fed Chair Jerome Powell indicated after last month's hike that the central bank may be forced to raise rates higher than investors are expecting if economic data remains hot.

Some experts, like analysts at Goldman Sachs, have said they now believe the Fed will forego another interest rate increase due to the current troubles for the banking industry. As the Fed is caught between addressing still-stubborn inflation and concerns around the banking news, this decision will be an important one for the economy and the markets moving forward.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Take control of your financial future by investing in Gold
Achieve greater financial security by providing effective solutions that can help protect your wealth. Click below to start investing today!
Invest in Gold

Aftermath of bank news

Markets have been rattled following the failures of Silicon Valley Bank and Signature Bank, as well as concerns about the financial health of Swiss bank Credit Suisse and most recently San Francisco-based First Republic.

The situation is still unfolding, keeping investors on edge.

Investors will be "continuing to assess the scope of the bank crunch, particularly on the heels of Credit Suisse woes and questions relating to how widespread the banking sector calamity might become and how regulators will handle the situation in both the U.S. and abroad," says Greg Bassuk, CEO at AXS Investments.

Economic data

On Tuesday, the National Association of Realtors will release the latest data on existing home sales, which helps gauge how the U.S. housing market is doing overall.

Bassuk says it's data investors will be watching.

"Investors have been searching to hang their hats on more consistent economic data, rather than the very mixed economic reports over the last several months," he adds. Those mixed reports have created "a cloud of confusion and uncertainties regarding the health of the U.S. and global economics and the resulting direction in which the Fed will move in 2023 on its rate hike policies."

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Ads by Money. We may be compensated if you click this ad.Ad
Goldco can help you take control of your financial future

More from Money:

Here's How Much Money You'd Have if You Bought Stocks When the Market Hit Bottom 14 Years Ago

What the Boom in Stock Buybacks Means for Investors

7 Best Online Stock Trading Platforms