Market Strategy

The Dow Jones Industrial Average (DJIA) climbed to a new record on Friday, as traders analyzed fresh data suggesting continued progress in reducing inflation. Wall Street also marked its third consecutive week of gains.

Federal Reserve officials will speak this week, providing more insight into their recent decision to reduce interest rates. Friday's release of the August Personal Consumption Expenditures (PCE) Price Index will show whether inflation continues to slow.

Stocks rose higher on Friday, with both the S&P 500 and Nasdaq Composite marking their best weekly performance of 2024 as investors await the upcoming Federal Reserve meeting.

Markets will be closed for the Labor Day holiday on Monday. After that, investors will be focused on key labor market data, primarily the Friday release of the August jobs report.

U.S. stocks climbed on Friday after Federal Reserve Chair Jerome Powell hinted that interest rate cuts are on the horizon. The Dow Jones Industrial Average rose by 462.30 points, or 1.14%, reaching 41,175.08. The Nasdaq Composite saw a 1.47% increase, closing at 17,877.79, while the S&P 500 gained 1.15%, ending the day at 5,634.61—just shy of the all-time highs reached last month.

Investors anticipate comments from Federal Reserve Chairman Jerome Powell and other central bank officials after positive economic data last week. Presidential candidate Kamala Harris will speak at the Democratic National Convention on Thursday.

This week will bring fresh data on inflation, the housing market, and retail sales after a volatile week for markets amid worries about the health of the economy. A handful of Federal Reserve speakers will also give remarks during the week, potentially offering more insights.

After a weaker-than-expected jobs report rattled markets last week, and the manufacturing sector contracted more than anticipated last month, investors will get fresh data on the services sector, consumer credit levels, and more this week.

It will be a busy week for markets with big events in monetary policy and earnings from more than half of the Magnificent Seven companies. The Federal Reserve will announce its latest decision on interest rates this Wednesday, which will be followed by comments from Chair Jerome Powell.

U.S. stocks ended Friday trading in the red as Wall Street concluded a week characterized by a shift from this year’s megacap winners to smaller names. The S&P 500 fell by 0.71%, closing at 5,505.00. The Nasdaq Composite dropped 0.81%, ending at 17,726.94. The Dow Jones Industrial Average decreased by 377.49 points, or 0.93%, to 40,287.53.

This week, the focus will shift to the earnings season, as economic data and central banker speeches will be relatively light. Nevertheless, market participants will keep an eye on economic reports for insights into the Federal Reserve’s future policy decisions.

The S&P 500 rose to a new high on Friday, achieving a record close as the latest jobs report fueled hopes for Federal Reserve rate cuts.