Monday Market Must-Knows: September 28, 2023

Will Inflation's Rise Spark September Rate Hikes?

In the previous trading week, two significant events stood out. Nvidia's remarkable earnings initially propelled its stock, but subsequent market days saw a reversal. Similarly, Jerome Powell's speech at the Jackson Hole Symposium revealed potential future rate hikes, leading to volatile market conditions. In the upcoming week, attention should be focused on the following key points:

  1. Earnings Calendar: The upcoming week features notable earnings reports. Neo, Best Buy, Hewlett Packard, Salesforce, Viva Systems, Prudential, CrowdStrike, Lululemon, Broadcom, Dollar General, Sienna, Dell, VMware, and Hormel Foods are scheduled to report.
  2. GDP Growth: Fed Chairman, Powell emphasized growth in the US economy during the Jackson Hole Symposium. Second-quarter GDP numbers, an advance reading of 1.3%, are set to release. Expectations of 2.4% could be affected by a contraction in quarterly GDP, maintaining the annualized figure.
  3. Core PCE Price Index: Inflation remains a central concern. The Core PCE Price Index, a key metric for the FOMC, will be disclosed. With a previous value and expected value of 0.2%, consistency at this level may be positive, while deviation could impact markets. Higher values could trigger market sell-offs, signaling potential September rate hikes.

Although a light earnings week is anticipated, the GDP growth figure and the Core PCE Price Index release are crucial indicators that could influence market trends.

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