Market News 24 FEB
5 Key Factors Influencing the Market This Week
Last week brought significant volatility to the stock market, particularly in the technology and artificial intelligence sectors. Growth stocks experienced notable losses, and the S&P 500 ($SPX) (SPY) retreated from recent all-time highs. Investors are reassessing the valuation of high-tech companies, making this week critically important for the market. Here are five key factors to watch.
1. Nvidia (NVDA) Earnings Report
The most anticipated event of the week will be Nvidia’s earnings report on Wednesday. The company plays a central role in the artificial intelligence boom, and its report will impact the entire tech sector. Investors will closely watch not only the financial figures but also management’s outlook on AI chip demand. After a 95% stock increase over the past 12 months, the market has high expectations, but significant volatility in either direction remains a possibility.
2. Revised Q4 GDP Report
On Thursday at 8:30 AM, the second reading of the Q4 GDP report will be released. While this is a revision of previously published data, any significant deviations could affect market sentiment. Investors are looking for confirmation of economic resilience or signs of a slowdown, which could adjust expectations regarding Federal Reserve interest rate decisions.
3. Core PCE Price Index – Key Inflation Indicator
The Core PCE Price Index report on Friday at 8:30 AM will be a crucial metric for the Federal Reserve. Recent CPI and PPI data exceeded forecasts, raising inflation concerns. If the PCE Index also surpasses expectations, it could delay monetary policy easing, putting pressure on stocks. Conversely, a lower inflation reading could bring renewed optimism to the market.
4. Consumer and Housing Data
On Tuesday at 10:00 AM, the Consumer Confidence report will be released, revealing whether market gains and easing inflation have improved sentiment. On Wednesday, fresh data on new home sales will provide insights into the housing market’s resilience amid high interest rates. These reports could influence consumer discretionary stocks, such as Home Depot (HD), which will also release its earnings report on Tuesday.
5. Growth Stock Performance After Last Week’s Decline
Last week, high-growth tech companies like Palantir (PLTR), AppLovin (APP), and Hims & Hers Health (HIMS) came under significant pressure. Traders will be watching to see if the sell-off continues or if these stocks find support. Earnings reports from Salesforce (CRM) and Snowflake (SNOW) could also impact the market by either reinforcing or alleviating concerns about overvalued growth stocks.
This week, the market will be influenced by earnings reports from major tech companies, economic growth and inflation data, and consumer sentiment. Volatility remains high, and traders should be prepared for sharp movements in both directions. Keep an eye on these factors to make well-informed investment decisions.