September 25, 2017

Quincy Krosby, Chief Market Strategist, Prudential Financial

President Donald Trump’s legislative agenda, led by attempts to repeal and replace the Affordable Care Act by the end of September, probably will dominate the market this week, Prudential’s Chief Market Strategist Quincy Krosby said Monday in her weekly “Connecting the Dots” outlook.

Also this week, a detailed tax reform framework will be introduced amid much fanfare as the administration seeks to garner support. The plan is likely to be amended as it makes its way through Congress, Krosby said.

“Keep in mind, whatever comes out is just the starting point,” she said. “It will work its way through the legislative process.”

The mounting escalation of tension with North Korea also continues to hover over the markets as the war of words between Trump and Kim Jong-un turned personal last week, she said. Trump wants China to do more, but China doesn’t want to completely isolate its neighbor because it could result in chaos, triggering a cascade of refugees to stream across the border. Moreover, they do not want an increased U.S. presence in their region. Considering that the Communist Party National Congress begins in mid-October, Chinese authorities do not want to see the war of words escalate further.

Other potential market movers this week will be a parade of speakers from the Federal Reserve who will offer their assessments of the economy and the direction of monetary policy, she said.

Fed Chair Janet Yellen is scheduled to speak Tuesday in Cleveland. In addition to her remarks, the question-and-answer session period will be monitored for any updates following last week’s Federal Open Market Committee meeting. 

Economic releases this week include housing data, personal income and on Thursday, the final reading of the second-quarter gross domestic product report.

To talk to Quincy Krosby about her views of the market, contact Lisa M. Bennett or Dara Scerbo.

Read Quincy Krosby’s full Q3 Market Commentary: Third Quarter Checkup.

The views and opinions are those of the author at the time of publication and are subject to change at any time due to market or economic conditions. This is solely for informational purposes. This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.