Dow Hits Record High as Inflation Data Boosts Confidence - Weekly Market Recap
The Dow Jones Industrial Average reached a new all-time high on Friday, signaling optimism among traders due to promising inflation data. Wall Street closed the week with a third consecutive week of gains.
The Dow rose by 137.89 points to close at 42,313.00, setting both a session and all-time high. However, the S&P 500 and Nasdaq experienced slight dips, with tech giant Nvidia dragging down the Nasdaq index by 2%.
For the week, the S&P 500 and Dow added around 0.6%, while the Nasdaq gained almost 1%. Investors were encouraged by the inflation data, which could prompt the Federal Reserve to continue lowering interest rates.
Looking ahead, the upcoming week is filled with crucial employment data releases, including the September jobs report on Friday. JPMorgan economists anticipate stable job vacancies in the August JOLTS report, with a predicted increase of 125,000 positions in the September jobs report.
Additionally, the week will see the release of important economic data such as the ISM Manufacturing report, ADP jobs data, and jobless claims, among others. Federal Reserve Chair Powell is also scheduled to make public comments following the recent rate cut.
Nike's upcoming earnings report is in focus, with analysts expecting pressure in fiscal Q1 2025 but deeming expectations sufficiently de-risked. Other companies reporting earnings this week include Lamb Weston Holdings Inc, Carnival Corp., and Levi Strauss.
Analysts from Bank of America, Goldman Sachs, Wedbush, and Morgan Stanley provide insights on US stocks, emphasizing factors like equity performance, Return on Equity (ROE) premiums, tech stock projections, and the impact of labor data on market performance in the near future.
In conclusion, the market's positive response to inflation data and upcoming economic releases signal a potential for continued growth and stability in the stock market. Investors should pay attention to key indicators and earnings reports to make informed decisions about their financial portfolios.
