After last week’s disappointing inflation reports helped break the S&P 500’s five-week winning streak, investors are likely to shift gears this week, returning their focus to corporate earnings.1 Nvidia — the most magnificent of the Magnificent Seven — is set to report earnings Wednesday afternoon.2 After gaining nearly 50% so far this year, the bar is clearly set high for Nvidia’s fourth-quarter results.2
This holiday-shortened week’s economic calendar is relatively light, highlighted by February’s S&P Global Purchasing Managers’ Index (PMI) report and existing home sales.3 Existing home sales is projected to post a modest increase, possibly indicating a turn in the steady decline in existing home sales since the Federal Reserve (Fed) started raising rates nearly two years ago.
With Fed policymakers continuing to emphasize the need to be patient with interest rate cuts and needing more proof inflation will reach its 2% target, Wednesday’s release of the January Federal Open Market Committee (FOMC) meeting minutes may provide more clarity about the Fed’s timing for lowering rates.3
Sources:
1Yahoo! Finance – US stocks slip as hot inflation print ends 5-week win streak; 2/17/24
2Investor’s Business Daily – Nvidia Set For 'Most Important Earnings Report Of The Year'; 2/16/24
3MarketWatch – U.S. Economic Calendar; as of 2/20/24
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