Stocks set foot over the weekend as a series of economic data sparked concerns about slower than expected economic growth and sticky inflation.
After finishing its highest ever closure on Wednesday, the S&P 500 (^GSPC) scored around 1.7% of the week in a disappointing outlook from Walmart (WMT), with concerns about inflation being centered around. Meanwhile, the Nasdaq Composite (^ixic) fell by about 2% as the Dow Jones Industrial Average (^DJI) led losses, dropping by nearly 3%.
Nvidia (NVDA) revenue releases Revenue after the bell on Wednesday also focuses on reports from Home Depot (HD), Lowe (Low) and Salesforce (CRM), which are expected to be headlined a week ago It’s there.
Economic data shows investors will closely monitor the release of the Fed’s preferred inflation gauge, the “core” personal consumption expenditure (PCE) index, on Friday. We expect a second quarter Gross Domestic Product (GDP) estimate and an update on consumer confidence and home prices.
With inflation still exceeding the federal targets and the labour market is a solid foothold, the market is betting that the Federal Reserve will not cut interest rates in the first half of 2025.
With the PCE release in January, we’ll take a fresh look at key inflation measurements on Friday. Economists project annual “core” PCE (excluding food and energy from the volatile category) on the project, clocking in at 2.6% in January at 2.6%, down from 2.7% seen in December. I did. Over the previous month, economists projected “core” PCE at 0.3%, exceeding the 0.2% seen in the previous month.
Due to component differences, data is expected to show a more sluggish pace of price increases in January than the Consumer Price Index (CPI). That report shows the biggest rise in core prices since April 2023.
Morgan Stanley’s chief US economist Michael Gagun wrote in a memo that a 2.6% increase in core PCE in January “means a meaningful stepping stone at a 12-month pace of core inflation,” according to a quarterly note. It follows the call. Percent interest rate reductions from the Fed in June.
Market AI darlings are expected to report quarterly results after Wednesday’s bell. Analysts expect Nvidia to report adjusted earnings per share of $0.84, up 63% year-on-year. Meanwhile, revenue is projected to be $382.6 billion, up 73% from the same period last year.
Investors are waiting to hear Nvidia CEO Jensen Huang talks about the environment for AI chip demand and whether he will deal with the potential upward race in the AI space from China’s Deepseek.
The report is because most of the “magnificent seven” tech stocks, including Nvidia, have delayed the S&P 500 so far this year, and have not contributed to the profits seen on benchmark averages as much as the last two years.
“The inventory could be a volatile post-result, but investors will be able to cite Robotics and Quantum Technology at NVIDIA’s leading new product pipeline (GB300, Rubin) and upcoming GTC conferences (March 17). We look forward to the overall market expansion to the company, so we expect aggressive momentum to resume. “Bank of America analyst Vivek Arya wrote a note to our client.
Stocks are resilient through wide-ranging headlines on President Donald Trump’s policy, but concerns have emerged in various survey data points.
On Friday morning, the University of Michigan Consumer Sentiment Survey Index reached its lowest level since November 2023, but economic output measured by the S&P Global’s Flash US Composite PMI fell to its lowest level in 17 months. did.
Concerns about the possibility of driving tariffs and inflation have been front and center in both releases.
“The bright mood seen among US companies at the beginning of the year evaporated, replacing it with dark photos of increasing uncertainty, stagnant business activity and rising prices,” said S&P Global Market Intelligence chief economist. Chris Williamson said in the release. Wide range of concerns about the impact of federal government policies, from spending cuts to tariffs and geopolitical developments. ”
Williamson added that upcoming optimism has been transformed into “one of the most pessimistic since the pandemic.”
The shares were sold on Friday, with the S&P 500 and Dow over 1.7% and Nasdaq composites over 2%. There were only one day of sales in a market hovering near record highs, with some gloomy data points, but market behavior now reflects some uncertainty among investors Masu.
With a near-record high stock valuation, City US equity strategist Scott Cronart told Yahoo Finance that investors price Trump’s policy impact when market passes rise in high in 2025 He said there were more bumps when he tried to.
“In our view, there are still benefits to S&P between now and the end of the year,” says Chronert. “But between here, there is probably continued volatility and concern, and we are continuing to look for pullbacks and better purchase points.”
Economic Data: Chicago Fed Activity Index, January (previously 0.15); Dallas FED Manufacturing Activities, February (previously 14.1).
Revenue: Chegg (Chgg), Cleveland-Cliffs (CLF), Diamondback Energy (Fang), Domino’s Pizza (DPZ), Hims & Hers (Hims), Riot (Riot), Trip.com (TCOM), Zoom (ZM)
Economic data: FHFA Home Price Index, Month Month, December (0.3% before); S&P CoreLogic CS 20 cities from the previous year, seasonally unadjusted December (4.33% before). Conference Committee Consumer Trust, February (103.5 forecast, before 104.1); Richmond Fed Manufacturing Index, February (-4);
Revenue: American Tower (AMT), AMC (AMC), Cava (Cava), First Solar (FSLR), The Home Depot (HD), Instacart (CART), Intuit (INTU), Keurig Dr. Pepper (KDP), Krispy Cream (DNUT), Lemonade (LMND), Lucid (LCID), Planet Fitness (PLNT), Working Day (WDAY)
Economic data: MBA mortgage application, week ending February 21st (previous – 6.6). New home sales month in January (-2.7% is expected, previously 3.6%). Buildings are allowed monthly for the last month (+0.1% before) of January
Revenue: NVIDIA (NVDA), Anheuser-Busch Inbev (BUD), Advance Auto Parts (AAP), C3.AI (AI), Clear Secure (You), Lowe’s (Low), Marathon Digital Holdings (Mara), NRG Energy ( NRG), Salesforce (CRM), Snowflake (Snow), Stellantis (STLA)
Economic data: 4th quarter GDP, second revision (+2.3% annual rate, +2.3% or earlier); 4th quarter personal consumption, second revision (+4.2% previously); 1st unemployment claims, the week ended on February 22nd (previously 219,000). Durable product orders, January spare (+2.2%, formerly -2.2%)
Revenue: Archer Aviation (ACHR), Clover (CLOV), Duolingo (Duol), Norwegian Cruise Line (NCLH), Toronto-Dominion Bank (TD), Soundhound AI (Soun), Vistra Corp. (VST)
Economic data: PCE inflation, month month, January (+0.3% expected, before +0.3%); PCE inflation, year-on-year, January (+2.5% expected, formerly 2.6% +2.6 %). “Core” PCE, month month, January (+0.3% is expected, before +0.2%); “Core” PCE, year-on-year, January (+2.6% is expected. +2.8% is expected) ; Mni Chicago PMI, February (previous 39.5)
Revenue: fubotv (fubo)
Josh Schafer is a Yahoo Finance reporter. x Follow him at @_joshschafer.
For more detailed analysis including the latest stock market news and moving inventory events, click here
Read the latest financial and business news from Yahoo Finance
