Janice R. Andrews
Monday is going to be a big day for the Dow Jones Industrial Average as U.S. market futures are rising ahead of a crucial week. Dow futures (YM=F) increased by almost 0.4% after the blue-chip index had a significant gain of more than 650 points the previous week. In addition, S&P 500 futures (ES=F) saw a 0.4% gain, while Nasdaq 100 futures (NQ=F) saw a 0.6% increase.
After a strong inflation report on Friday raised hopes for more interest rate reductions, investors are feeling upbeat. Though there have been notable tech sell-offs and a recent period of volatility, the market is still focused on important events this week that might affect the current surge.
Though no quick adjustment in rates is anticipated, the Federal Reserve’s rate decision on Wednesday is much awaited. Analysts speculate that given the present favorable inflation and economic prospects, the central bank may decide to wait until September before taking any more action.
The July nonfarm payrolls data, which is scheduled for release on Friday, will add to the significance of this week. The job market is predicted to show symptoms of weakening in this study, which might have an impact on choices to lower interest rates in the future in 2024.
This week’s results from significant tech companies, including Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Meta (META), are due in addition to economic reports. After the “Magnificent Seven”‘s prior earnings caused a significant stock loss, investors are very wary.
More than 150 S&P 500 businesses will report their quarterly earnings prior to these tech behemoths, with McDonald’s (MCD) leading the way the week before the market opens on Monday.
Investors are on high alert as the market moves through these pivotal moments, watching out for any shocks that can undermine the fragile rally. The choices and reports made this week will probably determine the direction the market takes in the upcoming months.
