The Dow Jones Industrial Average fell 0.85% last week as the broader market rally lost ground before a modest Friday bounce. Dow, S&P 500 and Nasdaq futures resume trading Sunday evening with Nvidia's earnings and Fed Chairman Kevin Warsh's first Jackson Hole speech both due this week.
Indexes Slip Then Bounce
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, a bearish signal for the rally. The indexes then rose modestly on Friday, with all but the Nasdaq regaining their 21-day lines.
For the week, the S&P 500 index lost 1.4% and the Nasdaq composite tumbled 2.05%. The small-cap Russell 2000 declined 1.65%, while the Nasdaq-100 fell below its 50-day line, down 2.45% for the week.
Warsh Speech And Fed Meeting Ahead
Fed Chairman Kevin Warsh will speak Friday at the Jackson Hole monetary policy symposium. Warsh does not typically give forward guidance, but investors will watch for clues on whether a rate hike is likely at the Sept. 15-16 Fed meeting. The 10-year Treasury yield rose four basis points to 4.74% last week after matching a 19-month high of 4.75% intraday Tuesday.
Nvidia Earnings Set Up The Week
Nvidia reports earnings and guidance Wednesday night, a report the market treats as crucial for the AI trade. Marvell Technology, CrowdStrike, Okta, Rubrik, SentinelOne, Salesforce and Workday also report this week, after chip and AI hardware stocks and software leaders both had a tough week.
Trade tensions also weighed on markets: U.S.-Canada trade talks collapsed, and new 50% tariffs on $20 billion worth of Canadian goods took effect Saturday. Canadian Prime Minister Mark Carney vowed to match those tariffs dollar for dollar.
Source: Investor's Business Daily
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