This week's market outlook will be driven by remarks at Jackson Hole and the release of corporate earnings and jobs data. Last week, developments involving Nvidia and Broadcom, along with a reset in interest-rate expectations, jolted the market.
Last week, the S&P 500 ended trading 0.49% higher, while the Nasdaq rose 0.43% for the week. Nvidia in the PHLX Semiconductor Index, meanwhile, fell 2.20%, and Bitcoin declined 1.57%. The odds of a rate hike in September are seen as evenly split.
Nvidia and Broadcom presented the market with a new set of assumptions by outlining a fiscal 2028 framework that would reshape the structure of the AI supply chain. There has also been speculation that remarks by Warsh at Jackson Hole reset expectations for the path of interest rates.
The focus this week is expected to center on how far the narrative around AI and supply chains will extend, and how corporate earnings and jobs data will affect that momentum.