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Wall Street jumped sharply on Friday, with the Dow hitting a fresh all-time high as investors welcomed Federal Reserve Chair Jerome Powell’s remarks at Jackson Hole. At Jackson Hole, Powell remarked that a shifting balance of risks “may warrant adjusting our policy stance,” signaling a potential willingness to lower the central bank’s policy rate if conditions justify it. “Risks to inflation are tilted to the upside, and risks to employment to the downside – a challenging situation,” Powell added. As a result, the odds of a rate cut in September rose as the chance of a September cut was at ~71% before the speech and rose to ~93% after it.
With market sentiment on edge, investors must keep an eye on economic reports due to be released next week, such as Building Permits and Chicago Fed National Activity on Monday, Durable Goods Orders, and House Price Index on Tuesday, with reports such as MBA Mortgage Applications, Crude Oil Imports, and Gasoline Production on Wednesday. Thursday will include reports on Core PCE Prices, GDP, and Pending Home Sales, with the Core PCE Price Index, Chicago PMI, Personal Income, and Personal Spending set to be released on Friday.
NVIDIA (NVDA), CrowdStrike (CRWD), Snowflake (SNOW), HP (HPQ), Alibaba (BABA), Dell (DELL), Dollar General (DG), Li Auto (LI), Ulta Beauty (ULTA), Best Buy (BBY), and Okta (OKTA) will report earnings next week.
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Earnings spotlight: Monday, August 25: HEICO (HEI), Semtech (SMTC). See the full earnings calendar.
Earnings spotlight: Tuesday, August 26: Bank of Montreal (