The past week on Wall Street saw back-to-back weekly gains with the S&P 500 and Nasdaq both finishing up nearly 1.5%. This positive momentum came after Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole, signaling imminent interest rate cuts. Powell’s remarks led the market to expect significant cuts by the end of the year, with current odds predicting multiple cuts in the coming months. Overall, the market seemed optimistic about the future trajectory of monetary policy.
TJX Companies, a leading off-price retailer, was the best-performing stock of the week, gaining over 6.5% after a strong quarterly beat and raised guidance. Palo Alto Networks also had a solid week, with a 4% increase following strong earnings and a positive outlook. However, Estee Lauder faced scrutiny and was dropped from the portfolio due to lackluster performance in the prestige beauty market.
Looking ahead, Nvidia is set to report its fiscal 2025 second-quarter earnings, which is a highly anticipated event in the market. Investors will be closely watching for guidance on the current quarter and insights into supply and demand dynamics. Salesforce and Best Buy are also gearing up for their earnings releases, with expectations for an industry upswing and insights into consumer trends in AI technology.
The upcoming week brings key economic data releases, including the second look at U.S. economic growth in the second quarter and the PCE price index, a crucial measure of inflation favored by the Federal Reserve. Analysts are looking for signs of economic resilience and progress towards the Fed’s 2% inflation target. GDP and PCE data will be closely monitored for any deviations from expectations.
The upcoming week is packed with company earnings reports, including Abercrombie & Fitch, Chewy, Kohl’s, and Foot Locker, among others. Nvidia and Salesforce will be reporting after the bell on Wednesday, with expectations running high for both companies. Thursday will see the release of GDP and jobless claims data, providing further insights into economic performance. Friday’s focus will be on the PCE price index and consumer sentiment data.
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Wall Street’s recent gains and Powell’s dovish comments have set the stage for an eventful week ahead. With key earnings reports, economic data releases, and market expectations in focus, investors will be navigating through a mix of opportunities and challenges. Staying informed and proactive in trading decisions will be essential in navigating the dynamic landscape of the financial markets.
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