What will drive the markets this week?
On Friday, the S&P 500 and Dow Jones Industrial Average marked yet another record-high close, with all three major Wall Street indices notching weekly gains, propelled by the momentum of artificial intelligence stocks. Nvidia, a prominent player in AI, continued its upward trajectory, gaining 0.4% and briefly surpassing the $2 trillion market valuation milestone for the first time. Anthony Saglimbene, chief market strategist at Ameriprise, noted Nvidia’s significant role in driving the Nasdaq and S&P 500 upwards.
In Europe, shares reached another record high for the second consecutive day, fueled by gains in Standard Chartered following robust earnings. However, comments from European Central Bank President Christine Lagarde tempered investor enthusiasm.
In Asia, Japan’s stock market remained closed for a public holiday, but Nikkei futures indicated a potential 1% increase, suggesting the continuation of the record-breaking streak for Japanese stocks next week.
This week, analysts monitoring the market will eagerly await the release of the Personal Consumption Expenditures (PCE) Price Index on Thursday, which is considered the Federal Reserve’s preferred gauge of price fluctuations. This release will be pivotal as Fed officials are keen on gathering further evidence regarding the inflation trajectory. Following the publication of the PCE data, several Fed representatives are scheduled to deliver public speeches, offering insights into their interpretations of the inflationary trends along with other economic indicators.
Also, a roster of companies is slated to announce their earnings, including Workday (WDAY), Lowe’s (LOW), Salesforce (CRM), Paramount Global (PARA), Anheuser-Busch InBev SA (BUD), and Dell Technologies (DELL). Investors can anticipate updates on the housing market and consumer confidence metrics alongside these earnings reports.
Events expected to move the markets this week
Monday, Feb. 26
- New home sales (January)
- Workday (WDAY), Zoom Video Communications (ZOOM), Domino’s Pizza (DPZ), and Unity Software (U) report earnings
Tuesday, Feb. 27
- Durable-goods orders (January)
- S&P Case-Shiller Home Price Index (January)
- Consumer confidence (February)
- Lowe’s (LOW), ONEOK (OKE), Bank of Montreal (BMO), American Tower (AMT), and AutoZone (AZO) report earnings
Wednesday, Feb. 28
- U.S. gross domestic product (GDP) (Q4 first revision)
- U.S. trade balance (January)
- Retail inventories (January)
- Wholesale inventories (January)
- Salesforce (CRM), Snowflake (SNOW), Royal Bank of Canada (RY), HP (HPQ), TJX (TJX), Paramount Global (PARA), and Monster Beverage Corp. (MNST) report earnings
Thursday, Feb. 29
- Personal Consumption Expenditures (PCE) Price Index (January)
- Initial jobless claims (Week ending Feb. 24)
- Pending home sales (January)
- Atlanta Fed President Raphael Bostic, Chicago Fed President Austan Goolsbee, and Cleveland Fed President Loretta Mester deliver remarks
- Anheuser-Busch InBev (BUD), Dell Technologies (DELL), Toronto-Dominion Bank (TD), Hewlett Packard Enterprise (HPE), and Best Buy (BBY) report earnings
Friday, March 1
- Dallas Fed President Lorie Logan, Federal Reserve Board Gov. Christopher Waller, Atlanta Fed President Bostic, and San Francisco Fed President Mary C. Daly deliver remarks
- RadNet (RDNT), Plug Power (PLUG), and FuboTV (FUBO) report earnings