A stock market rally is likely to occur in the near future, as recent data indicates that a bounce is expected after a period of selling pressure, with several sectors and markets reaching oversold levels and trading below their normal risk ranges. Additionally, analysis suggests that sectors such as Utilities, Consumer Staples, Real Estate, Financials, and Bonds, which have been underperforming, could provide upside potential in 2024 if there is a decline in interest rates driven by the Federal Reserve.
Despite recent market gains, investors are concerned that the current rally may be the last hurrah before an economic contraction, especially after the Federal Reserve indicated that it could hike interest rates twice more this year.
The stock market rally attempt experienced a setback as the S&P 500 and Nasdaq saw a downside reversal, indicating that the correction is still ongoing, while retailers faced challenges and Treasury yields reached a 15-year high. Meanwhile, Federal Reserve Chair Jerome Powell warned of potential rate hikes due to high inflation.
Investors will have a lot to consider this week as they analyze economic indicators such as US nonfarm payrolls, wage growth, and inflation, as well as Eurozone inflation numbers and central bank commentary, all of which could impact policy decisions and market sentiment.
Tech stocks led a rally in the stock market, with the Nasdaq Composite gaining 1.6% and the S&P 500 ending a four-day losing streak, despite the rise in Treasury yields; investors will be looking for clues about the US consumer spending and the economy as retailers' earnings reports are expected, and Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole symposium is anticipated for indications on interest rates.
US equity markets were relatively stagnant last week, with major indexes trading up and down around their 200-day moving averages, indicating a lack of direction and potential resistance, while Treasury markets appeared to stabilize despite an inverted yield curve, suggesting a potential recession on the horizon. Fed Chair Jerome Powell's hawkish speech on Friday emphasized the need for caution and the possibility of higher interest rates, while Nvidia's strong earnings highlighted the company's dominance in the artificial intelligence sector.
A potential relief rally in the stock market is expected to start the week, but the upside is limited due to uncertainties about interest rates and the recent volatility, according to a Wall Street technician. The S&P 500 and Nasdaq Composite have experienced pullbacks, but a relief rally may be possible in the near term. However, the long-term trend remains uncertain, and the risk of a downturn in the financial system is elevated.
Wall Street is focused on upcoming inflation and jobs data, looking past Fed Chair Jerome Powell's cautious message and anticipating potential interest rate hikes.
Stocks were relatively unchanged as investors awaited new economic indicators and data on the health of the US economy, including consumer confidence, jobs openings, and inflation reports, which could impact expectations for future interest-rate rises from the Federal Reserve.
Stocks gained momentum on Tuesday as new data pointed to a cooling labor market, with the S&P 500 and Dow Jones Industrial Average rising, bolstered by a decrease in job openings and a reversal in consumer confidence. The Nasdaq Composite led the gains, while the upcoming key reports on inflation and payrolls will likely shape investors' expectations for the Federal Reserve's interest rate decisions.
Equity markets are higher as investors consider macro data, with Wall Street experiencing a rally fueled by optimism about interest rates and job openings.
Wall Street's rally in stocks is expected to pause as investors await new data on jobs and GDP to determine whether the US economy has been impacted by Federal Reserve tightening.
Stocks are expected to rally next month, with the S&P 500 potentially reaching its previous highs, according to Fundstrat's Tom Lee, who cited reasons such as a cooling economy, no further interest rate hikes from the Fed, overly bearish sentiment in August, and historically strong performance in September.
Wall Street rises ahead of new inflation and jobs data that could impact Federal Reserve's policy decisions, as futures for the Dow Jones and S&P 500 increase, while Dollar General falls 16% and software company Salesforce rallies 6% in premarket.
Summary: The stock market shows signs of a rally, with major indexes surpassing the 50-day line and Treasury yields decreasing, growth stocks are leading, and software companies like Salesforce, MongoDB, and CrowdStrike reporting positive earnings; meanwhile, Amazon and Shopify announce a deeper partnership, and Tesla unveils an upgraded Model 3 while also lowering prices. Additionally, a near-perfect jobs report and tamed inflation data suggest that the Fed may not continue with rate hikes.
Stock investors have been reacting positively to "bad economic news" as it may imply a slowdown in the economy and a potential halt to interest rate hikes by the Federal Reserve, however, for this trend to change, economic data would have to be much worse than it is currently.
The coming week is expected to be lighter for investors, with the Federal Reserve's interest rate decision being the highlight, as US markets observe Labor Day and updates on the services sector and corporate earnings are anticipated.
Investors should prepare for increased market volatility next week as the stock market faces multiple risk events, including U.S. CPI inflation, retail sales figures, and wholesale prices, which will impact the Federal Reserve's policy outlook.
Bond traders are anticipating that the Federal Reserve will continue with interest-rate hikes, and next week's consumer-price index report will provide further insight on how much more tightening may be required to control inflation.
The main event to watch this week is the latest inflation data, which will precede the Federal Reserve's September policy meeting.
Asia stock markets are softer ahead of U.S inflation data, with investors looking for signals about the Federal Reserve's next moves on interest rates.
Summary: Stock futures are trading higher as investors anticipate the release of U.S. inflation data and consider its impact on monetary policy.
India's stock market has seen a rally as strong macroeconomic fundamentals and China's economic slowdown keep foreign investors invested in Indian stocks, while a surge in retail investor interest continues to drive the market.
Stronger-than-expected U.S. economic data, including a rise in producer prices and retail sales, has sparked concerns about sticky inflation and has reinforced the belief that the Federal Reserve will keep interest rates higher for longer.
Stocks rise as reports suggest the US economy is strong, but inflation remains a concern.
Investors should focus on the Federal Reserve's decision on interest rate hikes and the market's biggest themes during the coming week, according to CNBC's Jim Cramer.
Stocks mostly lower as investors await Federal Reserve's interest rate decision and assess new economic data showing easing core inflation and a cooling labor market, with expectations high for the Fed to hold rates steady.
Stocks slip as investors await the Federal Reserve's policy meeting and the start of Instacart's IPO trading, with focus on interest rates and inflation.
Investors will closely scrutinize the Federal Reserve's updated economic forecasts, particularly its interest rate outlook, to determine the market's next big story.
The Federal Reserve is expected to maintain steady interest rates at its two-day meeting, but investors will be focused on policymakers' economic forecasts, while metals prices remain mixed and U.S. stock markets anticipate the release of the Fed's policy projections.
Investors are more focused on the release of new forecasts from the Federal Reserve, which will reveal their views on the prospect of an economic "soft landing" and the rate environment that will accompany it.
Investors are preparing for more inflation data from the US and Europe this week while still digesting the surprising and contradictory central bank decisions from last week, causing global markets to feel the heat as US bond yields surge and a strengthened dollar hits a six-month high.
Investors are focusing on the release of economic reports on GDP and inflation as they evaluate the Federal Reserve's stance on interest rates and its efforts to cool down inflation. Metal prices have slipped due to concerns over global demand and the economy, and the risk of a government shutdown is also adding to the bearish sentiment. Earnings reports from various companies and core PCE inflation data are expected in the week ahead.
The Federal Reserve's recent hawkish stance and the sharp tightening of financial conditions have triggered jolts in bonds and stocks, raising questions about investor positioning going into the final quarter of 2023.
Investors attempt a risk-on rally as Treasury yields and oil prices stabilize, but concerns over higher interest rates continue to impact sentiment in European and global markets.
Investors will be keeping a close eye on the latest data on the U.S. labor market this week, which will have implications for consumer spending and the Federal Reserve.
Investors will be closely watching market reactions to a late deal to avert a government shutdown, as well as key data on the labor market this week, while concerns about higher interest rates and the impact on the economy weigh on stock futures.
Market veteran Ed Yardeni predicts a year-end rally in the stock market, driven by strong corporate earnings and resilient economic growth, despite potential risks from higher interest rates.
Jim Cramer anticipates a potential stock market rally based on Friday's upcoming nonfarm payroll report, which may influence the Federal Reserve’s decision on interest rates and potentially please the market, although weakness in certain sectors is expected.
The stock market is poised for a relief rally, as several internal indicators have hit oversold extremes after a period of panic selling, according to Fairlead Strategies' Katie Stockton.
Stocks rallied on Wednesday as US Treasury yields backed off recent highs, but the breakneck pace of the rates rally combined with slowing economic growth is flashing a warning to bond market observers.
Concerns surround the upcoming release of U.S. payrolls data and how hawkish the Federal Reserve needs to be, as global markets experience a period of calm following a tumultuous week that saw Treasury yields rise to 16-year highs, crude oil prices drop, equities decline, and the yen strengthen. Japanese government bond yields are also causing concern, as investor sentiment towards the Bank of Japan's stimulus remains low.
Investors are awaiting the jobs report to determine the Federal Reserve's next move on interest rates, with wage growth and revisions to previous monthly totals being key factors to watch, amidst indications that the economy is less sensitive to rising interest rates due to lower household and corporate debt levels.
Wall Street rallies as investors analyze strong US job market report, though concerns about inflation and high interest rates persist.
Stock markets are wavering as investors anticipate another rate hike by the US Federal Reserve, fearing its impact on the global economy, however, recent inflation data suggests that inflation is declining and consumer spending is rising.
Amid concerns about high oil prices, sticky inflation, and rising wages, investors may be poised to panic, but a closer look reveals a more positive long-term outlook with solid job market, moderating inflation, and decent growth.
Investors will be focused on September inflation data and the start of earnings season, while keeping an eye on stocks like JPMorgan Chase, Pepsi, and Delta this week.
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