The S&P 500 Index and its top ETFs like VOO and SPY have pulled back in the past few days as concerns about the soaring US debt remained. It retreated to 7,674 points, down slightly from the all-time high of 7,820 points. This article looks at some of the top catalysts that will drive these assets this week.
Nvidia, Marvell, and Salesforce earnings
The main catalyst for the S&P 500 Index and its ETFs like VOO and SPY is the upcoming Nvidia earnings report. This will be a crucial report because it is the biggest constituent and is the top beneficiary of the AI boom.
Analysts expect these earnings to show that its revenue nearly doubled in the second quarter, helped by the strong demand of its GPUs and servers. A strong earnings beat and raise, and a potential share buyback will be highly bullish for the stock.
There will be more earnings reports this week. In addition to Nvidia, Marvell Technologies will release its numbers later this week. These are important numbers as they come a week after it reached a $12 billion deal with Google.
Most importantly, investors will receive earnings from companies like Salesforce, Autodesk, CrowdStrike, Workday, and Synopsys, among others. These numbers will come at a time when there are concerns about demand for software amid the ongoing AI boom.
Jackson Hole Symposium
The other stock market news this week will come from Wyoming, where central bank officials will meet at Jackson Hole. This will be an important meeting because it will be the first one in Kevin Warsh’s era. Historically, this meeting has signaled what to expect.
For example, in a 2024 statement, Jerome Powell signaled that the bank would begin cutting interest rates, ending the 2023 and 2023 hiking cycles. Market participants are hoping that Warsh will provide forward guidance.
In addition to the Jackson Hole Symposium, there will be some important macro events to watch this week. The Conference Board will publish the latest consumer confidence report on Tuesday. Also, the US will release the latest personal consumption expenditure (PCE) report later this week. These numbers will provide more cues on what to expect from the Fed.
US to unveil Iran sanctions as Iran threatens to escalate
Meanwhile, the stock market is reacting to the falling crude oil prices, with Brent and WTI moving to $91 and $84, respectively. This sell-off is happening amid reports that the US was intensifying its tanker escort operations through the Strait of Hormuz. Reports are that millions of barrels are passing through the Strait.
Looking ahead, the US will unveil more sanctions against Iran today. These sanctions will include an economic blockade that seals the loopholes that help Iran to do business. Iran has warned that it will retaliate, especially against the United Arab Emirates (UAE). As such, there is a likelihood that an escalation will lead to higher oil prices and volatility in the stock market.
Separately, the stock market will react to the latest Canada-US tensions after talks between the two collapsed. Traders will be waiting for Trump to TACO (Trump Always Chickens Out), a move that will be bullish for the stock market. Additionally, traders will focus on the volatility in the artificial intelligence industry.
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