New York, NY – Stocks edged higher last week, with the S&P 500 notching multiple record highs as investors absorbed new data on cooling inflation and resilient economic growth. The S&P 500 and Dow Jones Industrial Average both saw gains of about 0.7%, while the Nasdaq Composite surged nearly 1%.
Looking ahead, the focus will be on the upcoming September jobs report, which is expected to shed light on the pace of the labor market slowdown. Additionally, updates on job openings, activity in the services and manufacturing sectors, and consumer confidence will be closely monitored.
In terms of individual companies, investors will be paying attention to Tesla’s delivery update and Nike’s quarterly results.
The latest reading of the Fed’s preferred inflation gauge indicated a continued cooling trend, nearing the Fed’s targeted 2% goal. Federal Reserve Chair Jerome Powell emphasized that the labor market remains in a healthy state, with interest rate cuts aimed at sustaining this condition.
However, concerns about a slowdown in the labor market persist, with unemployment rates rising and job gains slowing down. As anticipation builds for the release of the October jobs report, analysts are closely watching for signs of a gradual cooling rather than a sudden decline.
Nike is set to report its fiscal first-quarter earnings, with all eyes on the company’s performance and the impact of changes in leadership. On the other hand, Tesla’s stock has been on the rise, with expectations for the company’s third-quarter delivery numbers.
Investors are also observing the overall market trend following the Federal Reserve’s decision to cut interest rates, with a particular focus on consumer spending and economic growth. Any indications of strength in these areas are seen as positive for equities.
In the coming week, economic data releases and earnings reports from companies like Carnival Corporation, Lamb Weston, Conagra, and Levi Strauss will provide further insight into the state of the economy and corporate performance. Additionally, the nonfarm payrolls report on Friday will be closely watched for its impact on market sentiment.
