What will drive the markets this week?
On Friday, U.S. stocks pulled back, marking the end of a challenging week for the market. The Dow Jones Industrial Average saw a decline of 106.58 points, equivalent to a 0.31% drop, ultimately closing at 33,963.84. The S&P 500 also experienced a decrease of 0.23%, settling at 4,320.06. Meanwhile, the Nasdaq Composite registered a slight 0.09% slip, ending the day at 13,211.81.
In Europe, shares concluded the week on a downward trajectory, recording substantial weekly losses. Investors grappled with the possibility of prolonged global interest rate hikes. The pan-European STOXX 600 index declined by 0.3%, reaching its lowest point in over a week. Notably, the construction and materials sector was among the top decliners, falling by 1.0%.
Across Asia-Pacific markets, the outcome was mixed following the Bank of Japan’s decision to maintain its current monetary policy during their latest meeting on Friday. Some markets managed to recover losses earlier in the day. The central bank retained interest rates at -0.1% and imposed a cap on the 10-year Japanese government bond yield at approximately zero.
This week holds significant economic events. We anticipate the release of the latest housing price data in the United States, along with updates on new and pending home sales for the month of August. Additionally, Federal Reserve Chair Jerome Powell is scheduled for a town hall-style discussion with educators on Thursday. On Friday, we will receive the most recent figures for the Personal Consumption Expenditures (PCE) Price Index, which is the Federal Reserve’s preferred gauge for measuring inflation.
Furthermore, this week features earnings reports from several noteworthy companies, including Costco, Micron Technology, Accenture, Nike, CarMax, and Carnival Cruise Line.
Events expected to move the markets this week
Monday, September 25
- Thor Industries Inc. (THO) reports earnings
- Chicago Fed National Activity Index (Aug)
- Dallas Fed Manufacturing Index (Sep)
Tuesday, September 26
- Costco Wholesale Corp. (COST), Cintas Corp. (CTAS), Ferguson PLC (FERG), and Neogen Corp. (NEOG) report earnings
- S&P Case-Shiller National Home Price Index (Jul)
- FHFA House Price Index (Jul)
- New Home Sales (Aug)
- CB Consumer Confidence Index (Sep)
- Richmond Fed Manufacturing Index (Sep)
- Dallas Fed Services Index (Sep)
Wednesday, September 27
- Micron Technology Inc. (MU), Paychex Inc. (PAYX), Jefferies Financial Group (JEF), Concentrix Corp. (CNXC), and H.B. Fuller Company (FUL) report earnings
- Durable Goods Orders (Aug)
Thursday, September 28
- Accenture PLC (ACN), Nike (NKE), Jabil Inc. (JBL), CarMax Inc. (KMX), Vail Resorts Inc. (MTN), and BlackBerry Ltd. (BB) report earnings
- U.S. Gross Domestic Product - Final Reading (Q2 2023)
- Real Consumer Spending - Final Reading (Q2 2023)
- Corporate Profits (Q2 2023)
- Pending Home Sales (Aug)
- Kansas City Fed Composite Index (Sep)
- Fed Chair Jerome Powell’s Town Hall Speech1
Friday, September 29
- Carnival Corporation (CCL) reports earnings
- Personal Income and Spending (Aug)