Stock Market Rollercoaster: From Worst Day in Two Years to Strong Finish
Last Monday, the stock markets experienced a massive crash, marking the worst day in two years. However, by the end of the week, the major indexes, including the S&P 500, made a remarkable recovery, nearly breaking even.
The markets kicked off this week on a positive note, with the and S&P 500 showing gains after the opening bell. On the other hand, the and saw slight declines on Monday.
This week, investors are gearing up for a flurry of earnings reports from big players like Home Depot (NYSE:), Walmart (NYSE:), Cisco Systems (NASDAQ:), and ON Semiconductor (NASDAQ:). But the highlight of the week will be the release of the July inflation data through the Consumer Price Index on Wednesday.
Wild Ride for S&P 500
Just a week ago, the stock markets were rocked by a massive sell-off that saw the and Dow Jones Industrial Average plummeting over 1,000 points. Several factors contributed to the crash, including weak economic reports, global concerns over an interest rate hike in Japan, and slowing corporate earnings.
However, investor sentiment shifted mid-week, leading to a buying spree that helped major indexes recover most of their losses. By Friday, the S&P 500 had rebounded to a mere 2-point loss for the week, showcasing resilience in the face of adversity.
While the Nasdaq, Dow, and Russell 2000 also saw declines, the overall market sentiment improved significantly as investors hunted for bargains in the wake of the crash.
Inflation Data This Week
As we head into mid-August, investors are keeping a close eye on earnings reports from key retailers like Home Depot, Walmart, and Ross Stores. These results will provide insights into consumer spending patterns and confidence levels.
Additionally, the earnings reports from ON Semiconductors and Cisco Systems will be crucial for semiconductor and tech stocks. However, all eyes will be on Wednesday’s inflation data release, which could influence the Fed’s decision on potential rate cuts in September.
Other economic reports to watch include Retail Sales on Thursday and Consumer Sentiment on Friday, shaping the market outlook for the coming weeks.