The stock market rally bent but didn't break last week, with the Dow Jones, S&P 500 and Nasdaq all posting losses before a modest Friday rebound. Dow Jones futures open Sunday evening as Nvidia, CrowdStrike and Marvell Technology earnings loom alongside Fed Chairman Kevin Warsh's first Jackson Hole speech.
Dow, S&P 500, Nasdaq post weekly losses
The Dow Jones Industrial Average fell 0.85% in last week's trading, while the S&P 500 index lost 1.4% and the Nasdaq composite tumbled 2.05%. The small-cap Russell 2000 declined 1.65%, and the Nasdaq-100 fell below its 50-day line, down 2.45% for the week.
All the key indexes fell below their 21-day moving averages on Thursday, and the Nasdaq also closed below its Aug. 4 follow-through day low. However, the indexes rose modestly on Friday, with all but the Nasdaq regaining their 21-day lines.
Earnings and Jackson Hole speech ahead
Nvidia and Marvell Technology headline AI hardware earnings this week, alongside cybersecurity names CrowdStrike, Okta, Rubrik and SentinelOne, plus Salesforce and Workday. Meanwhile, the 10-year Treasury yield rose four basis points to 4.74%, after matching a 19-month high of 4.75% intraday Tuesday.
Fed Chairman Kevin Warsh will speak Friday at the Jackson Hole monetary policy symposium. Warsh doesn't like giving forward guidance, but investors will watch for clues on whether a rate hike is likely at the Sept. 15-16 Fed meeting.
Trade dispute adds pressure
U.S.-Canada trade talks collapsed last week, with new 50% tariffs on $20 billion worth of Canadian goods taking effect on Saturday. Canada Prime Minister Mark Carney vowed to "match those tariffs dollar for dollar". A trade deal had seemed likely earlier in the week, one that would have avoided the tariffs and lowered existing duties on steel, aluminum, autos and lumber.
Sector rotation added to the market's difficulty last week, as chip and AI hardware stocks struggled while gold, copper and bitcoin plays advanced. Nvidia, CrowdStrike and other earnings this week could decide whether those areas flash buy or sell signals next.
Source: Investor's Business Daily
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