August Ends on Cautious Note: US Stocks Eye Earnings Growth
The US stock market is preparing for its final week of August, and experts are cautiously optimistic. Jim Ferraioli from the Schwab Center for Financial Research forecasts a 'modestly cautious' outlook due to seasonal weakness and uncertainty in global markets.
Ferraioli points out that earnings growth has been strong throughout the year, and he wouldn't be surprised if the market continues to look past current risks. Meanwhile, Quant Analyst Kruti Shah from Equirus Securities notes that a softer DXY, Treasury yields, and firm precious metals are supporting risk assets.
The Dow Jones, Nasdaq Composite, and S&P 500 indices took significant hits last week, with the tech-heavy Nasdaq falling 2.3%. However, Nvidia will be in focus this week due to its quarterly results, amidst concerns over AI infrastructure spending. Other key releases include ADP weekly employment change data, GDP, initial jobless claims, and trade balance figures.