Wall Street saw back-to-back weekly gains as it headed into an important week, featuring Nvidia earnings and updates on the Federal Reserve’s inflation gauge. The S & P 500 and Nasdaq rebounded after Thursday’s losses, closing the week with nearly a 1.5% increase, driven by optimism following Fed Chairman Jerome Powell’s speech at Jackson Hole. Powell’s comments suggested that interest rate cuts were imminent, leading the market to expect a total of 100 basis points of cuts by the end of the year.
During the week, TJX Companies emerged as a top performer with a more than 6.5% increase after a strong quarterly beat and guidance raise. Palo Alto Networks also saw significant growth, gaining 4% after a positive earnings report. On the other hand, Estee Lauder’s earnings report fell short, leading to a decision to remove the stock from the portfolio due to lackluster performance in the prestige beauty market. The market also took some selling actions in an overbought market, trimming holdings in Morgan Stanley and Abbott Laboratories.
Looking ahead, Nvidia is set to announce its fiscal 2025 second-quarter results, with investors closely watching for updates on guidance for the current quarter. Additionally, Salesforce will be reporting its fiscal 2025 second quarter earnings, aiming to recover from a disappointing previous quarter. Best Buy is expected to release its fiscal 2025 second quarter earnings, with a focus on marketing AI-equipped devices to drive future revenue growth.
In addition to corporate earnings, the week ahead includes key economic data releases. The government is set to provide a second look at U.S. economic growth in the second quarter and the release of the personal consumption expenditures (PCE) price index. Analysts anticipate an increase in both headline PCE and core rate, indicating a potential recovery in inflation towards the Fed’s 2% target. Furthermore, the GDP report is expected to show steady economic growth, with a particular focus on year-over-year price increases.
The upcoming week features a number of important events, including earnings reports from companies like Abercrombie & Fitch, Salesforce, and Best Buy. Economic data releases include the GDP preliminary estimate, weekly jobless claims, and pending home sales figures. The focus will be on how these reports shape market sentiment and investor behavior going forward.
Overall, Wall Street’s recent performance reflects a mix of positive sentiment driven by potential interest rate cuts and corporate earnings results. The upcoming week is poised to provide further insights into market trends and economic conditions, shaping investment strategies and portfolio decisions for the future.