Everything to Know about Macro and Markets
Markets ended a volatile week on a down note, with the S&P 500 (SPX) and the Nasdaq Composite (NDAQ) descending from intraday record highs. All four major benchmarks closed the week in the red, reversing two weeks of increases, with the Dow Jones Industrial Average (DJIA) registering its worst weekly decline since October.
Macro News in Focus
Midweek, investors cheered the Federal Reserve Chair Jerome Powell’s remarks, which supported rate-cut optimism. In his Congressional testimony, Powell reiterated that the Fed would need more evidence that inflation continues to ease before embarking on an easing path. However, he confirmed that he views an interest-rate reduction later this year as “appropriate” should the trend of price deceleration continue.
Stronger-than-expected payroll growth was another indication that interest rates will not be falling in the near future. This despite the fact that the unemployment rate ticked higher and wage growth cooled down, as a surge in hiring pointed at a still tight job market. Overall, the jobs data supported the Federal Reserve’s “on hold” stance, keeping the odds of a June rate cut unchanged.
This week, the markets will be focusing on the economic reports concerning the second part of the central bank’s dual mandate, price stability. The data-heavy week features the crucial CPI report on Tuesday, the producer prices and retail sales data points released on Thursday, and the consumer sentiment report scheduled for Friday.
Notable Stock News
AI poster child Nvidia (NVDA) was down 5.6% on profit-taking, still registering a weekly gain of almost 4%. Weakness was palpable across the sector, with chip stocks Broadcom (AVGO) and Marvell Technology (MRVL) falling sharply after earnings. Broadcom disappointed investors by not upgrading its fiscal full-year 2024 outlook despite blockbuster quarterly earnings, while Marvell tumbled on weaker-than-expected guidance for the ongoing quarter.
Tech stocks were pressed down over the past week as investors took profits following a scorching rally over the past several months. According to Bank of America’s (BAC) strategists, technology funds saw the largest outflow on record for the week up to March 6th.
Upcoming Earnings and Dividend Announcements
The Q4 2023 earnings season is almost over, but several important earnings releases are scheduled for this week.
This week’s most significant event will be the release of the earnings reports of Oracle (ORCL) and Adobe (ADBE).
Other notable earnings reports will be published by Dollar Tree (DLTR), Archer-Daniels-Midland (ADM), Williams-Sonoma (WSM), Lennar (LEN), Dick’s Sporting Goods (DKS), Ulta Beauty (ULTA), and Jabil (JBL).
Ex-Dividend dates are coming this week for Lam Research (LRCX), Public Storage (PSA), HP (HPQ), Walmart (WMT), Merck (MRK), Coca-Cola (KO), and other dividend-paying firms.
For more exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.
