Investors are gaining confidence that the Federal Reserve may cut interest rates in September, which could boost stocks. Nvidia’s earnings and the July personal consumption expenditure price index reading next week will confirm whether tech is a buying opportunity or if the rotation up and down the cap spectrum is warranted.
The recent rally on Friday, after Fed Chair Jerome Powell delivered his final speech at Jackson Hole, Wyo., has lifted investor optimism. The Dow Jones Industrial Average hit a fresh record, with small caps and semiconductors surging. Regional banks also jumped, while mega-caps roared back to life.
Nvidia’s earnings results are crucial in determining whether the tech rally is back on. The company is expected to beat expectations, but its exposure to China has put it in the crosshairs of the Trump administration and Beijing. Despite this, many analysts remain bullish on the stock, citing the rapid ramp-up of AI capital expenditures.
The July personal consumption expenditure price index reading will likely confirm an uptick in inflation from tariffs. However, investors are well aware of short-term hurdles and expect a positive week ahead, despite the expected increase in inflation. August has been surprisingly strong for the stock market, with the Dow and S&P 500 advancing 3% and 2%, respectively.
The week ahead calendar is packed with economic data releases, including New Home Sales, Durable Orders, and Consumer Confidence. A positive earnings season could carry the market through next week before Labor Day weekend, potentially across all parts of the market.
Source: https://www.cnbc.com/2025/08/22/stock-market-next-week-week-of-aug-25-29-2025.html