The week ahead promises to be filled with economic data releases, corporate earnings reports, and continued market volatility. The services and manufacturing sectors are expected to dominate the schedule, while investor focus will also shift back to big-name companies like Nvidia, Walmart, and Deere & Company.
The recent move in bond yields, following the Federal Reserve’s interest rate cut, has sparked concerns about inflation data that was released last week. While the Fed doesn’t need to be “in a hurry” to lower interest rates, as stated by Powell, markets are still wary of the situation.
Nvidia is set to report earnings and is expected to surpass expectations with a beat and raise in revenue guidance. The company’s stock has rallied significantly in recent months, driven by its latest AI chip releases. However, even Nvidia’s strong performance may not be enough to offset concerns about the broader market’s uneven trading action following the election.
Small-cap stocks are also facing challenges, with estimates at the margin moving sharply lower over the past 20 days. Analysts will be monitoring earnings growth to gauge a potential recovery in the small-cap sector.
In terms of economic data releases, the focus will be on MBA mortgage applications, initial jobless claims, and existing home sales for Monday; leading index, Kansas City Fed manufacturing activity, and initial jobless claims for Thursday; S&P Global US manufacturing PMI, S&P Global US services PMI, and University of Michigan consumer sentiment for Friday.
Source: https://finance.yahoo.com/news/stock-rally-stumbles-with-nvidia-earnings-on-tap-what-to-know-this-week-123851710.html