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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuWall Street is heading into a crucial week for the Federal Reserve as the central bank’s rate policy decision takes center stage, according to NYSE insider Jay Woods. Traders should be prepared for volatility as the Fed rolls out its decision on rates this Wednesday, Woods said. Central bank officials are set to announce their next move on policy that day at 2 p.m. ET. Recent economic data shows that inflation remains sticky, and fed funds futures trading suggests a roughly 90% likelihood of a quarter-point rate hike, according to the CME FedWatch tool . The current target rate range is 3.5% to 3.75%. “The market is priced in,” Woods said. “All eyes are on the Fed.” The more surprising outcome could be if the central bank holds rates steady. “If we hike, I think the table is set for a rally,” he said. “If we don’t hike, watch out. We could get a knee-jerk reaction and sell off.” The S & P 500 has been trading in a narrow range, with Woods watching 7,600 as an important technical level — the index’s 50-day moving average. The S & P 500 recently tested that level and held, but subsequently made a lower high. With the 10-year Treasury yield trading near 5% and oil prices continuing to climb, Woods said the market lacks the support of a major catalyst from earnings. “The momentum looks lower,” he said. “So we are really focused on that 7,600 level and what Warsh has to say Wednesday afternoon.” Outside the Fed, Woods is watching these two stocks this week. Lennar down more than 20% this year and trading near a 52-week low. The stock has traded lower after 11 of its past 12 earnings reports, with an average post-earnings decline of 4.7%, according to Woods. The homebuilder is set to report earnings on Sept. 16 after the bell. Woods is also watching Corning . He said the stock remains in a long-term uptrend despite recent pressure, pointing to $145 to about $147 as the “ultimate support” and “a great time” to get into the stock on a sell-off. Shares are up more than 66% this year. The glassmaker’s fiber-optic technology has become increasingly important to artificial intelligence data centers. Corning recently entered a multibillion-dollar partnership with Verizon to expand fiber infrastructure for AI connectivity, following separate multibillion-dollar deals with Amazon in June and Meta Platforms and Nvidia earlier this year. (This weekly Monday video is exclusively for CNBC PRO subscribers.)Read More