Wall Street is kicking off the week of August 11–15 feeling pretty good after the S&P 500 and Nasdaq posted some nice gains, mostly thanks to strong earnings and tech stocks bouncing back.
But it’s not all smooth sailing, investors have their eyes on some important inflation reports coming up: the Consumer Price Index on Tuesday and the Producer Price Index on Thursday.
Those numbers could really shift what people expect the Fed to do next. Retail sales and some big company earnings will also be in the spotlight.
Even though tech stocks are still driving the market, there’s a bit of caution around because of the usual seasonal ups and downs and ongoing worries about trade.
So, traders will need to balance going after profits with staying safe in case the market takes a sudden turn.
5 factors that could shape the week ahead
1. Consumer price index (CPI) – August 12
So, the CPI is basically this monthly report that shows if prices for the stuff we buy every day are going up or staying about the same.
The government puts it out, and the next one drops on August 12. People who watch the economy, like those in charge of interest rates, keep a close eye on it because it helps them decide what to do next.
It’s kind of a big deal for how the market feels and what might happen with the economy overall.
2. Producer price index (PPI) – August 14
The PPI is basically a report that shows how much prices are changing for stuff that producers sell, kind of like inflation but at the wholesale level.
It can hint at what might happen to prices for consumers down the road. The next report comes out on August 14 and will give a look at the costs producers are facing, such as raw materials and things they use to make products.
Investors watch this closely to get a sense of inflation trends and figure out what it might mean for company profits and interest rates.
3. Retail sales:
Retail Sales data basically shows how much people are spending each month at stores, restaurants, and online.
It’s a big deal because it tells us how healthy consumers are and how strong demand is. When the numbers look good, it means people are buying more, which is great for the economy.
But if sales come up short, it could mean folks are holding back. With all the talk about tariffs and inflation lately, this data really affects how confident the market feels and can even change earnings expectations for companies.
So traders and analysts keep a close eye on it.
4. Earnings reports (Cisco, Applied Materials, Deere):
This week, some big companies like Cisco, Applied Materials, and Deere are dropping their earnings reports. These numbers give a good idea of how they’re doing and what might be coming next for the economy.
If they do well, it usually gets people feeling positive, especially in tech and industrials. But if things look shaky, the market can get a bit jumpy.
Investors pay close attention to see if these companies are growing and what they expect for the future, especially with everything going on in the economy.
5. Volatility watch:
August and September are usually kinda shaky for the stock market. It’s just how things go every year.
Stuff like unexpected inflation numbers, trade drama, and people cashing out after the summer run can mess things up. Experts say all this, plus important reports coming out, might make the market jump around a lot.
So, traders gotta be smart, try to ride the good waves but not get caught off guard when things swing the other way.
The post Wall street outlook: 5 factors that could shape the week ahead appeared first on Invezz
