After a holiday-shortened week with significant labor market data, investors anticipate a quieter following week. The market was mixed on Thursday, with the S&P 500 closing flat, the Nasdaq down 0.8%, and the Dow up 1.1%. Monday is expected to bring notable economic data, with reports from S&P Global and the Institute for Supply Management likely to reflect the health of the U.S. services economy.
Despite the U.S. economy adding only 57,000 jobs in June—well below expectations—the market still predicts a Federal Reserve interest rate hike, though confidence has wavered slightly. Fed Chairman Kevin Warsh emphasized inflation concerns as the ongoing impacts of the Iran conflict complicate recovery efforts.
In corporate developments, earnings reports from PepsiCo and Delta Air Lines are anticipated, shedding light on consumer behavior and the effects of recent global disruptions.
Meanwhile, the tech sector shows a dichotomy, with semiconductor stocks performing exceptionally well—driven by demand for AI-related technologies—while overall tech indices struggle. Key players like Micron and Intel have seen significant stock increases, as analysts predict continued growth in the chip industry due to structural constraints in the AI economy.
Looking ahead, the economic and earnings calendar reveals a series of relevant reports set for the upcoming week, including PMI readings and earnings from various corporations.
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