Dow Jones, Nasdaq, S&P 500 weekly preview: All eyes on Microsoft
S&P 500 (SPX) gained 0.7% last week although the bulls weren’t able to secure a strong weekly close after printing a fresh 15-month-high. Still, the last week marked the eighth green weekly candle for the S&P 500 in the last 10 weeks as the generative AI frenzy keeps fueling the equities bull run.
Nasdaq (IXIC) lost 0.6% despite a strong rally in the opening days of the last week, ultimately resulting in a shooting star candle – which is a bearish near-term signal for tech-heavy IXIC. A short-term pullback could push the index to revisit important support around 13200, suggesting a pullback of around 6%.
On the other hand, Dow Jones Industrial Average (DJI) surged 2.1% to finally break out of the tight trading range. Last week’s high marks the highest the DJI index traded since April 2022.
This week is packed with U.S. economic data, starting with preliminary Global Manufacturing and Services PMI results for July. The Fed interest rate decision is out on Wednesday with the market fully expecting another – and possibly final – 25 bps rate hike.
«The key question is how strongly [Fed] Chair [Jerome] Powell will nod toward the 'careful pace' of tightening he advocated in June, which we and others have taken to imply an every-other-meeting approach,» Goldman Sachs strategists said last week.
On Thursday, we will see the preliminary GDP numbers for the second quarter, coupled with the Durable Goods Orders for July. Finally, the Core Personal Consumption Expenditures — Price Index report is out on Friday.
Mega-caps take the stage
The Q2 earnings season is in full swing after several mega-caps, including Tesla (NASDAQ:TSLA) and Netflix (NASDAQ:NFLX), reported last week. So far, 18% of the S&P 500 companies reported actual
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