Dow Jones, Nasdaq, S&P 500 weekly preview: How far can this rally go?
Investing.com — The S&P 500 closed last week at a new record high of 5,088, propelled by Nvidia’s blockbuster quarterly report. Earlier on Friday, the equity index rose to 5,111, marking a new all-time high.
The NASDAQ Composite jumped 2.96%, marking its strongest performance since February 2023 after closing at 16,041.62. The index, heavily weighted towards technology stocks, now sits near its record closing peak of 16,057.44. Meanwhile, the Dow Jones Industrial Average surged by 456.87 points, breaking past the 39,000 milestone for the first time and finishing at a new peak of 39,069.11.
Besides the latest rally driven by AI demand, the potential of a US interest rate cut is once again garnering attention in the market. Several Federal Reserve officials stressed the likelihood of rate cuts in the future, although opinions diverged on the timing of such a shift.
Looking ahead to this week, a number of key economic data reports are scheduled to come out in the coming days, and will likely make a notable impact on the current market dynamics. Arguably the most important piece of the data for this week comes on Thursday through the Core PCE Price Index.
“One of the main reasons stocks were able to look past the hot CPI and PPI was because Chicago Fed President Goolsbee said the Fed doesn’t really follow CPI and instead focused on the Core PCE Price Index,” Sevens Report’s analysts said in a note.
“Well, that’s what’s coming on Thursday, so it better not show a firming of inflation like CPI did, otherwise markets will have to more fully acknowledge that inflation pressures could be firming up and that means higher yields and more of a headwind on stocks.”
Moreover, new data on real gross domestic product (GDP),initial
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