This week promises to be pivotal for the markets, with a mix of key earnings reports, fresh economic data, and the aftermath of the FOMC’s recent rate decision. The coming days could offer valuable insights into how investors react to the new monetary policy and broader economic conditions.
Last Week’s Stock Market Recap
Last week, the markets responded positively after the Fed’s 50-basis point rate cut, its first since 2020. The S&P 500 jumped by 2.5%, while the Nasdaq rose 1.8%, largely driven by renewed optimism in tech and growth stocks. Energy stocks lagged, continuing their downward trend as oil prices stabilized. The Fed’s rate cut was designed to ease borrowing costs amid growing concerns over economic slowdown, and it seems to have sparked optimism in equity markets(Kiplinger.com)(Investing.com).
Key Earnings Reports This Week
A number of major companies are set to release earnings this week, which could drive market sentiment. Notable reports include:
- Micron Technology (MU): Reporting on Wednesday, September 25, Micron’s earnings will provide insights into the semiconductor industry, particularly around memory chip pricing. Analysts expect earnings of $1.13 per share, with revenue anticipated to surge 90% year-over-year(Kiplinger.com)(Investing.com).
- Costco (COST): Reporting on Thursday, September 26, Costco’s earnings will be closely watched, especially after its recent membership fee hike. Analysts project earnings of $5.08 per share on revenue of $79.9 billion, reflecting a 4.5% year-over-year increase(Kiplinger.com).
- CarMax (KMX) and Accenture (ACN): Both companies report on Thursday, and their results will shed light on consumer spending and enterprise software, respectively(Investing.com).
Key Economic Data to Watch
- U.S. Durable Goods Orders (Wednesday, September 25): This report will offer insight into the demand for long-lasting goods and the broader health of the U.S. manufacturing sector.
- Personal Income and Spending (Friday, September 27): This release will provide clues about consumer behavior in response to changing economic conditions and whether consumers are maintaining strong spending levels.
These reports will give a more detailed view of how the economy is reacting post-Fed decision.
Best and Worst Performers Last Week
- Best Performers:
- Tesla (TSLA) surged 6% following an upgrade from a major investment bank, citing improving production metrics and strong demand for electric vehicles.
- Nvidia (NVDA) continued its strong performance, gaining 4.5% last week as investor confidence in the semiconductor sector returned.
- Worst Performers:
- Chevron (CVX) and other energy stocks lagged, with Chevron falling 2.3% as oil prices remained volatile amid global economic uncertainties(Investing.com).
Stock with Greatest Upside Potential: Micron Technology (MU)
Technically, Micron is poised for further gains, with solid support levels around its 50-day moving average and momentum indicators showing strength. If earnings come in better than expected, the stock could see a strong breakout, particularly as memory chip pricing begins to stabilize after a volatile year(Kiplinger.com)(Investing.com).
Wrap-Up
This week, the market will focus on the aftereffects of the Fed’s rate cut, key earnings reports, and economic data releases. While the Fed’s easing policy is expected to support growth stocks, companies like Micron and Costco will be key barometers for tech and retail performance. Investors should brace for potential volatility as earnings season kicks into high gear.
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