Weekly Recap & Market Forecast $SPX (Sept 1st —> Sept 6th)
**DIYWallST Weekly Recap & Market Forecast**
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Hello Investors! 🌟 This week saw mixed movements in the stock markets as strength in consumer staples, energy, and financials helped offset weakness in discretionary and technology shares. Let’s dive into the key events that shaped the financial landscape. 📈
**Market Overview:**
The week began with consumer staples, energy, and financials providing support to the markets, counterbalancing the softness in discretionary and technology shares ahead of key earnings reports in those sectors. Oil prices rose early in the week as Israel responded to a Hezbollah attack from the North, and uncertainty over Libya’s production reemerged. However, crude prices fell back later in the week after a report suggested OPEC+ might proceed with a planned ‘gradual’ oil output increase starting in October. Gold prices continued to set new all-time highs, maintaining their recent outperformance over bitcoin. The S&P 500 encountered resistance around 5,600—a level approximately 20x average 2025 S&P earnings estimates, which moved up towards $275 following Nvidia and other companies' quarterly results. Stock indexes closed mixed for the week, with the S&P edging up 0.2%, the DJIA rising 0.9%, and the Nasdaq down by 0.9%.
**Stock Market Performance:**
- 📈 S&P 500: Up by 0.2%
- 📈 Dow Jones: Up by 0.9%
- 📉 NASDAQ: Down by 0.9%
**Economic Indicators:**
Economic data this week supported the expectation of more central bank rate cuts next month:
- **European CPI:** Preliminary German and French CPI fell below the ECB’s 2% target for the first time since August 2021, reinforcing expectations of a rate cut from the ECB in September.
- **US Durable Goods:** July data rebounded sharply as expected, but core capital goods (nondefense excluding aircraft) were disappointing, showing no monthly increase since April.
- **Richmond Fed Index:** The August print was soft, contracting to a level not seen since the pandemic.
- **PCE Inflation Data:** The Fed’s preferred inflation gauge did little to alter expectations for a September rate cut, while Q2 preliminary GDP and July personal consumption data remained solid.
- **US Yield Curve:** The 2-10 spread moved closer to de-inverting, with just a few basis points separating it from positive territory.
**Corporate News:**
Earnings reports continued to be a major market driver, especially in the retail sector, which delivered mixed signals:
- **Best Buy:** Exceeded earnings expectations despite posting its 11th consecutive quarter of negative US same-store sales, highlighting that consumers are seeking value but still willing to invest in new technologies.
- **Dollar General:** Missed estimates and confirmed that lower-end consumers are struggling, with many running out of paychecks before month-end and relying on credit cards for basic needs.
- **PDD (Temu-parent):** Shares were hit hard after the company reported that intensifying competition was pressuring revenue growth.
- **Nvidia:** Beat earnings expectations again but saw a slightly more modest increase in guidance than usual, leading to a retracement in big tech stocks on Thursday.
- **Marvell Technology:** Impressed investors with a strong earnings report and forecasted that custom silicon would become a significant revenue growth driver.
- **Intel:** Reportedly considering a major restructuring, which could include spinning off its foundry business.
- **Paramount:** The latest development in the ongoing acquisition saga saw the Edgar Bronfman Jr.-led consortium withdraw its proposal, clearing the way for Skydance to close the deal.
**Looking Ahead:**
Next week will bring several key events and data releases:
- **U.S. Jobs Report**
- **U.S. PMI Surveys**
- **Fed Beige Book**
- **Earnings Reports:** Broadcom (
AVGO), Dollar Tree (
DLTR), Dick’s Sporting Goods (
DKS), Nio (
NIO)
- **Labor Day Holiday:** Markets will be closed on Monday
As we move forward, these developments will be crucial in shaping market sentiment and guiding investment decisions. If you have any questions or need further insights, feel free to reach out. Here’s to another week of informed investing and strategic decision-making! 🌟
---
Hello Investors! 🌟 This week saw mixed movements in the stock markets as strength in consumer staples, energy, and financials helped offset weakness in discretionary and technology shares. Let’s dive into the key events that shaped the financial landscape. 📈
**Market Overview:**
The week began with consumer staples, energy, and financials providing support to the markets, counterbalancing the softness in discretionary and technology shares ahead of key earnings reports in those sectors. Oil prices rose early in the week as Israel responded to a Hezbollah attack from the North, and uncertainty over Libya’s production reemerged. However, crude prices fell back later in the week after a report suggested OPEC+ might proceed with a planned ‘gradual’ oil output increase starting in October. Gold prices continued to set new all-time highs, maintaining their recent outperformance over bitcoin. The S&P 500 encountered resistance around 5,600—a level approximately 20x average 2025 S&P earnings estimates, which moved up towards $275 following Nvidia and other companies' quarterly results. Stock indexes closed mixed for the week, with the S&P edging up 0.2%, the DJIA rising 0.9%, and the Nasdaq down by 0.9%.
**Stock Market Performance:**
- 📈 S&P 500: Up by 0.2%
- 📈 Dow Jones: Up by 0.9%
- 📉 NASDAQ: Down by 0.9%
**Economic Indicators:**
Economic data this week supported the expectation of more central bank rate cuts next month:
- **European CPI:** Preliminary German and French CPI fell below the ECB’s 2% target for the first time since August 2021, reinforcing expectations of a rate cut from the ECB in September.
- **US Durable Goods:** July data rebounded sharply as expected, but core capital goods (nondefense excluding aircraft) were disappointing, showing no monthly increase since April.
- **Richmond Fed Index:** The August print was soft, contracting to a level not seen since the pandemic.
- **PCE Inflation Data:** The Fed’s preferred inflation gauge did little to alter expectations for a September rate cut, while Q2 preliminary GDP and July personal consumption data remained solid.
- **US Yield Curve:** The 2-10 spread moved closer to de-inverting, with just a few basis points separating it from positive territory.
**Corporate News:**
Earnings reports continued to be a major market driver, especially in the retail sector, which delivered mixed signals:
- **Best Buy:** Exceeded earnings expectations despite posting its 11th consecutive quarter of negative US same-store sales, highlighting that consumers are seeking value but still willing to invest in new technologies.
- **Dollar General:** Missed estimates and confirmed that lower-end consumers are struggling, with many running out of paychecks before month-end and relying on credit cards for basic needs.
- **PDD (Temu-parent):** Shares were hit hard after the company reported that intensifying competition was pressuring revenue growth.
- **Nvidia:** Beat earnings expectations again but saw a slightly more modest increase in guidance than usual, leading to a retracement in big tech stocks on Thursday.
- **Marvell Technology:** Impressed investors with a strong earnings report and forecasted that custom silicon would become a significant revenue growth driver.
- **Intel:** Reportedly considering a major restructuring, which could include spinning off its foundry business.
- **Paramount:** The latest development in the ongoing acquisition saga saw the Edgar Bronfman Jr.-led consortium withdraw its proposal, clearing the way for Skydance to close the deal.
**Looking Ahead:**
Next week will bring several key events and data releases:
- **U.S. Jobs Report**
- **U.S. PMI Surveys**
- **Fed Beige Book**
- **Earnings Reports:** Broadcom (
AVGO), Dollar Tree (DLTR), Dick’s Sporting Goods (DKS), Nio (NIO)- **Labor Day Holiday:** Markets will be closed on Monday
As we move forward, these developments will be crucial in shaping market sentiment and guiding investment decisions. If you have any questions or need further insights, feel free to reach out. Here’s to another week of informed investing and strategic decision-making! 🌟
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