Company / Analytics

Analytics, 29 July 2024

What will drive the markets this week?

Wall Street’s major indexes closed higher on Friday as investors returned to tech megacaps that had caused broad sell-offs earlier in the week. Additionally, inflation data fueled optimism that the Federal Reserve might soon start cutting interest rates. For the week, the Dow gained 0.75%, while the S&P 500 declined 0.82% and the Nasdaq dropped 2.08%.

In Europe, shares closed higher on Friday, bolstered by earnings-driven gains across several sectors, including luxury, while global markets remained stable following data indicating an improving U.S. inflation outlook. The pan-European STOXX 600 index rose 0.8%, recording a marginal weekly advance of about 0.5%.

Asia-Pacific markets mostly rebounded on Friday following Thursday’s sell-off, which saw some indexes in the region hit their lowest levels in months. Japan’s Nikkei 225 was the notable outlier, extending losses for an eighth straight day, down 0.53% to 37,667.41. The Topix fell 0.38% to 2,699.54, its lowest since April 26. Chipmaker Renesas Electronics fell for the second straight day, plunging over 5% on Friday, bringing its share price to its lowest level since April.

The upcoming week promises significant activity in the markets, with key monetary policy announcements and earnings reports from more than half of the Magnificent Seven companies.

The Federal Reserve is set to reveal its latest interest rate decision on Wednesday, followed by remarks from Chair Jerome Powell.

Several major companies are scheduled to release their earnings this week, including top Big Tech firms like Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), and Meta Platforms (META), along with several chip manufacturers. Additionally, investors will receive quarterly updates from McDonald’s (MCD), ExxonMobil (XOM), and Merck (MRK).

Events expected to move the markets this week

Monday, July 29

Tuesday, July 30

Wednesday, July 31

Thursday, Aug. 1

Friday, Aug. 2

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