The New York market is expected to remain firm this week following the rebound in the previous week, with the release of the August PCE price index and September employment report the main focus. Among corporate earnings, attention will also be on releases from Micron Technology and Nike.
In the previous week, the Dow Jones Industrial Average rebounded 0.28%, its first gain in 7 weeks, while the Nasdaq Composite rose 2.06% and hit a record high for the second consecutive day. Expectations for progress in US-Iran negotiations over the situation in the Middle East sent oil prices sharply lower, improving investor sentiment. An agreement to extend the US-China trade truce also supported the market, while gains in AI-related stocks such as Meta helped drive the advance. Long-term US interest rates moved higher, however, and expectations of further rate increases weighed on the market at times toward the weekend.
This week, attention will focus on US inflation data, the September employment report and earnings releases from major companies. The August PCE price index and September employment report are viewed as important events that could affect the FRB’s monetary policy outlook. Signs of a slowdown in the labor market or easing inflation could reduce upward pressure on interest rates, while stronger results could diminish expectations for additional rate cuts. Micron Technology and Nike will be the main corporate earnings focus.
The indicators scheduled for release tonight include the August pending home sales index and the September Dallas Fed manufacturing activity index. No major corporate earnings releases are currently scheduled.