What will drive the markets this week?
On Friday, U.S. stocks experienced a decline, notably with the Nasdaq leading the downturn, following a producer prices report that surpassed expectations. This outcome dampened hopes for immediate interest rate cuts by the Federal Reserve. The S&P 500 closed by 24.18 points, or 0.49%, finishing at 5,005.15 points. The Nasdaq Composite dropped by 132.38 points, or 0.83%, reaching 15,775.65. The Dow Jones Industrial Average fell by 149.48 points, or 0.39%, settling at 38,623.64
In Europe, shares closed the week positively, buoyed by impressive earnings updates and the anticipation of rate cuts by the European Central Bank, which bolstered investors’ appetite for riskier assets.
In Asia, Hong Kong markets led the gains on Friday, with Japan’s Nikkei 225 hitting a fresh 34-year high in an attempt to reach its all-time peak. The Nikkei came close to scaling its record high, reaching an intraday high of 38,863.69, less than 100 points away from its pinnacle.
U.S. financial markets are shuttered on Monday because of the Presidents Day holiday. However, once markets resume on Tuesday, investors can anticipate a flurry of earnings reports throughout the week. Notable companies such as Nvidia (NVDA), Walmart (WMT), Home Depot (HD), Palo Alto Networks (PANW), and others are slated to disclose their financial performance.
Intel (INTC) will also launch its first annual conference for its growing foundry business.
Meanwhile, the Federal Reserve is set to unveil minutes from its January policy meeting, offering deeper insights into officials’ perspectives on interest rates. Fed representatives will also share their latest assessments of economic conditions through various speaking engagements.
Moreover, attention will be on the government as it convenes to discuss new proposals concerning student loan repayment.
Events expected to move the markets this week
Monday, Feb. 19
- U.S. markets closed for Presidents Day holiday
Tuesday, Feb. 20
- Walmart (WMT), Home Depot (HD), and Palo Alto Networks (PANW) report earnings
- U.S. leading economic indicators (January)
Wednesday, Feb. 21
- Nvidia (NVDA), Suncor Energy (SU), Exelon (EXC), Rivian Automotive (RIVN), and Marathon Oil (MRO) report earnings
- Intel launches its first annual conference for its foundry business
- Federal Open Market Committee (FOMC) January meeting minutes
Thursday, Feb. 22
- Intuit (INTU) and Booking Holdings (BKNG) report earnings
- Initial jobless claims (Week ending Feb. 17)
- S&P flash services PMI (February)
- S&P flash manufacturing PMI (February)
- Existing home sales (January)
- Department of Education student loan repayment rulemaking meetings begin
- Philadelphia Fed President Patrick Harker and Minneapolis Fed President Neel Kashkari deliver remarks
Friday, Feb. 23
- Warner Bros Discovery (WBD) reports earnings