Company / Analytics

Analytics, 12 February 2024

What will drive the markets this week?

On Friday, the S&P 500 marked a historic milestone, closing above 5,000 for the first time, while the Nasdaq briefly surged beyond 16,000. This surge was fueled by strong performances from mega-cap companies and chip stocks, particularly Nvidia, as investors showed confidence in artificial intelligence technology and eagerly awaited robust earnings data.

Despite the overall positive trend, the Dow Jones Industrial Average experienced a slight dip of 54.64 points, or 0.14%, closing at 38,671.69. The S&P 500 saw a gain of 28.70 points, or 0.57%, reaching 5,026.61, and the Nasdaq Composite surged 196.95 points, or 1.25%, hitting 15,990.66. For the week, all three major indexes recorded their fifth consecutive weekly gains, with the S&P climbing 1.4%, the Nasdaq rising 2.3%, and the Dow edging up by 0.04%.

Meanwhile, European markets closed slightly lower, with gains from Ubisoft and Hermes offset by a decline in L’Oreal shares and pressure from rising government bond yields. The pan-European STOXX 600 index closed 0.1% lower for the day but managed to secure a 0.2% gain for the week.

Japanese shares reached a 34-year high, with the yen recovering after hitting a 10-week low. In China, mainland markets were closed, while Hong Kong traded thinly and closed early, with the Hang Seng down 0.8% amid concerns over potential delays in government support promises.

Throughout the week, investors will remain attentive as earnings updates continue. Market analysts will be particularly focused on the forthcoming release of the Consumer Price Index (CPI) on Tuesday, eager to gauge the latest inflation figures following a recent uptick. Federal Reserve policymakers are closely monitoring these numbers for any indications of a sustained downward trajectory in inflation.

Thursday’s retail sales data will offer insight into consumer spending behavior in January, shedding light on whether the robust shopping patterns observed in recent months persisted. The homebuilder confidence index will serve as a barometer for ongoing positive trends in residential construction.

Additionally, several notable companies, including Coca-Cola Co., Cisco Systems Inc., and Stellantis NV, are slated to disclose their earnings performance this week.

Events expected to move the markets this week

Monday, Feb. 12

Tuesday, Feb. 13

Wednesday, Feb. 14

Thursday, Feb. 15

Friday, Feb. 16

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