Dow Jones, Nasdaq, S&P 500 weekly preview: Eyeing record highs

investing.com:

The S&P 500 (SPX) closed 2.5% higher last week, which marked the 7th straight week of gains. The index is now very close to posting fresh record highs as it returns to trade above 4700 for the first time since January 2022. Overall, the S&P 500 is up about 15% from the October lows.

Tech-heavy Nasdaq Composite Index (IXIC) was up 2.9% as the bulls eye 15,000 after nearly two years. On the other hand, the Dow Jones Industrial Average (DJI) was also up 2.9%, which was enough for the new record high.

Markets are still digesting the Fed’s dovish pivot and continued stock and bond rally. The rally in risk assets was a result of a massive jump in demand for bonds, which sent yields sharply lower.

“Markets have aggressively priced in no recession or slowdown, but that’s premature. The economy could easily slow and there are some signals slowing growth is happening,” analysts at Sevens Report said.

For this week, the Core PCE Price Index, due on Friday, holds particular significance as a gauge for inflation, a crucial factor in the Federal Reserve's recent dovish pivot. A larger-than-expected decline in inflation could reinforce expectations of rate cuts, potentially benefiting stocks.

Additional noteworthy data includes updates on Philly Fed and Durable Goods as solid readings could support the narrative of a soft landing and maintain current valuations. Weekly jobless claims on Thursday and Continuing Claims will also be closely monitored for insights into the labor market.

On the earnings front, FedEx (NYSE:FDX) reports on Tuesday after market close, followed by Micron (NASDAQ:MU) on Wednesday. A day later, Nike (NYSE:NKE) is the most notable reporter.

What analysts are saying?

Sevens Report analysts: “For this rally to