What will drive the markets this week?
U.S. stocks closed higher on Friday, marking their largest weekly gains of the year as concerns about an economic downturn eased and attention shifted to the upcoming Jackson Hole Economic Symposium. The Dow Jones Industrial Average climbed 96.7 points, or 0.24%, to 40,659.76, while the S&P 500 increased by 11.03 points, or 0.20%, to 5,554.25. The Nasdaq Composite added 37.22 points, or 0.21%, to reach 17,631.72.
European shares also ended the week on a positive note, with strong risk sentiment globally following several U.S. economic data releases. The pan-European STOXX 600 index rose 0.3%, maintaining its two-week high and posting its best weekly performance since May 6, with a 2.4% gain.
In Asia, Japan’s Nikkei share average jumped 3.6% on Friday, recording its best week in over four years, while Hong Kong’s Hang Seng Index rose 1.9%. Japanese stocks rebounded following steep losses last week after an unexpected Bank of Japan rate cut led to a sharp yen appreciation, disrupting yen-funded stock trades.
Investors are eagerly awaiting remarks from Federal Reserve Chairman Jerome Powell and other central bank officials following last week’s positive economic data.
On Thursday, presidential candidate Kamala Harris is set to address the Democratic National Convention.
This week, earnings reports are expected from retailers Lowe’s (LOW) and Target (TGT), as well as technology companies Palo Alto Networks (PANW) and Snowflake (SNOW).
Events expected to move the markets this week
Monday, Aug. 19
- Democratic National Convention begins
- U.S. leading indicators (July)
- Federal Reserve Gov. Christopher Waller delivers remarks
- Palo Alto Networks and Estee Lauder (EL) report earnings
Tuesday, Aug. 20
- Democratic National Convention continues
- Fed Vice Chair Michael Barr and Atlanta Fed President Raphael Bostic deliver remarks
- Lowe’s reports earnings
Wednesday, Aug. 21
- Democratic National Convention continues
- Federal Open Market Committee (FOMC) July 30-31 meeting minutes
- TJX Cos (TJX), Target, Snowflake, Zoom Video (ZM), Toll Brothers (TOL), and Macy’s (M) report earnings
Thursday, Aug. 22
- Initial jobless claims (Week ending Aug. 17)
- Existing home sales (July)
- S&P Global flash U.S. services and manufacturing PMI (August)
- Democratic National Convention concludes with remarks from presidential candidate Kamala Harris
- Jackson Hole Economic Symposium begins
- Intuit (INTU), TD Bank (TD), Workday (WDAY), and Ross Stores (ROST) report earnings
Friday, Aug. 23
- Fed Chair Powell delivers remarks at the Jackson Hole Economic Symposium
- New home sales (July)