Last week, Jerome Powell’s Jackson Hole speech marked a definitive turning point toward less restrictive monetary policy. Fed futures show a cumulative rate cut of 1% by their December meeting. Investors should consider locking in higher yields for the longer term, anticipating lower rates. The S&P 500 gained 1.47% on the week, with a two-week cumulative return of 5.46%.
Inflation data from Personal Consumption Expenditures(PCE) and Nvidia (NVDA) earnings should move markets this week. Inline data for PCE would keep expectations for a Fed rate cut in check. NVDA earnings are expected to show an increase of $0.64 non-GAAP per share, up 137.41% over the prior year. NVDA stock trades at $126.46 per share, up 155.36% year-to-date but off the June intra-day high of $140.76.
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Regards,
David Bennett