Dip buyers came back strong last week, driving the S&P 500 to close up nearly 6%. Tesla (NASDAQ:TSLA) and Nvidia (NASDAQ:NVDA) also had stellar weeks, with gains of 6% and 11%, respectively. Amid various developments, including the Federal Reserve, Apple’s (NASDAQ:AAPL) earnings report garnered significant attention due to both a top and bottom line beat and concerns about a slowdown in sales, leading to a decline in shares.
The upcoming week may seem less action-packed than the previous one, but there are still key events and themes to monitor. Here are five notable factors to keep an eye on in the market this week.
Earnings
Tuesday morning brings the Uber Technologies (NYSE:UBER) earnings report before the market opens. As a ride-share giant, Uber’s metrics and forward guidance could provide insights into the state of the economy. On Wednesday, Disney (NYSE:DIS) will report after the close. Given recent challenges in streaming and park attendance, Disney’s report will be closely watched for signs of its impact on the company’s performance.
Powell’s Speech
Federal Reserve Chair Jerome Powell is set to speak on both Wednesday and Thursday at different events in Washington DC. Powell’s speeches tend to introduce higher volatility into the market, especially considering the increasing significance of rate decisions in current times.
Escalating Tensions
Tensions are on the rise not only in the Middle East but globally, particularly in the Israel-Gaza conflict. As both sides seek support from potential allies, the possibility of a larger conflict looms. In the event of an escalation, markets may witness a sell-off, and oil prices could surge. Any confrontation between OPEC and Western nations could be detrimental, affecting both markets and consumers due to oil production’s potential use as a bargaining tool.
10-Year Auction
Interest rates remain a focal point of discussion, with the 2024 market pricing in several rate cuts. Monitoring Bond Auction results, specifically the 5-Year and longer auctions, can offer insights into the potential confirmation of these expectations. Observing the Bid-to-Cover ratio relative to previous auctions is a straightforward way to assess bond auction health. An increase or stability over time is a positive indicator.
Unemployment Change
On Thursday morning, keep an eye on the Unemployment Change data release. This metric has been steadily revised higher, aligning with reductions in non-farm payrolls and labor participation rates. Amid mixed data releases, the Fed’s acknowledgment of current economic conditions as a reason to maintain its pause, focusing on unemployment figures can offer valuable insights into the overall economic trajectory.
Featured Image: Freepik @ jannoon028
