December 28, 2024
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ECONOMY INFLATION

Are we headed for a stock market crash? These 2 upcoming tests will tell all!

Are we headed for a stock market crash? These 2 upcoming tests will tell all!

As we gear up for another exciting week on Wall Street, recent market performances have set the stage for what promises to be a pivotal period. After a week of gains, all eyes are on the upcoming Nvidia earnings and the Federal Reserve’s upcoming inflation gauge update. With Fed Chairman Jerome Powell’s positive speech from Jackson Hole providing assurance to investors, the S & P 500 and Nasdaq saw notable rebounds, closing the week with nearly 1.5% gains.

Here are some key highlights and insights to keep an eye on as we dive into the upcoming week:

  • Powell’s speech hinted at imminent interest rate cuts, stating that “the time has come for policy to adjust.” Market expectations now anticipate up to 100 basis points of cuts by the year’s end, with potential cuts in September, November, and December.
  • TJX Companies emerged as a top-performing stock last week, boasting over 6.5% increase following a strong quarterly beat and raised guidance. Palo Alto Networks also showcased strength, gaining 4% after delivering robust earnings and a promising outlook. However, Estee Lauder faced some headwinds, leading us to make the decision to exit due to lackluster progress in the beauty market.
  • As the market shows signs of being overbought, some strategic selling was carried out earlier this week. We trimmed positions in Morgan Stanley and Abbott Laboratories to maintain disciplined portfolio management.

Looking ahead, here’s a snapshot of what to anticipate:

  • Nvidia is set to report its fiscal 2025 second-quarter results in what could be one of the most highly anticipated releases of the season.
  • Salesforce will also be reporting its fiscal 2025 second quarter, with a focus on improvements following a previous quarter that came up short.
  • Best Buy’s fiscal 2025 second-quarter earnings are on the horizon, shedding light on the company’s performance in light of a potential computer hardware upgrade cycle.

Economic data releases, including the U.S. economic growth update and the inflation measure, will also be crucial events to watch out for in the coming week. All eyes are on the personal consumption expenditure (PCE) price index with expectations of positive growth.

Stay tuned for an action-packed week ahead as we navigate through key earnings reports, economic data releases, and market dynamics. It’s bound to be an exciting ride full of potential opportunities for investors to explore. Let’s stay sharp, focused, and strategic in our decision-making as we tackle the week ahead on Wall Street.

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