The S&P 500 posted gains for the third consecutive week, helped by positive GDP revisions and tamed inflation(PCE). Nvidia(NVDA) beat earnings estimates but experienced margin contraction partly due to production issues with its next-generation Blackwell chips. Thursday, NVDA shares declined 6.4%, highlighting that high expectations for future profits leave little margin for error.
Today, ISM’s purchasing manager’s index(PMI) for August came in below expectations. Some manufacturers blame contractions on tight monetary policy (high interest rates) and the upcoming election. Stocks opened lower and continued lower with the PMI data. Two important employment reports for August come out this week: JOLTS and Employment Situation. Both reports are highly anticipated, especially after last month’s disappointing jobs report.
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Regards,
David Bennett