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Nvidia earnings and PCE inflation data could drive major S&P 500 moves as traders brace for volatility and reassess tech stocks and valuations this week.
The largest growth-focused U.S. companies by market cap are Nvidia (NVDA 1.65%), Microsoft (MSFT 0.56%), Apple (AAPL 1.21%), Amazon (AMZN 3.12%), Alphabet (GOOG 2.98%) (GOOGL 3.10%), Meta Platforms (META 2.04%), Broadcom (AVGO 1.48%), Tesla (TSLA 6.18%), Oracle (ORCL 1.30%), and Netflix (NFLX -0.20%).
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In the days leading up to the annual Jackson Hole Economic Policy Symposium, all eyes were firmly on Federal Reserve Chair Jerome Powell and his speech on Friday, Aug. 22.
The S&P 500 ended its five-day losing streak on Friday, posting its largest daily gain in nearly three months after the Jackson Hole rally. The index finished the week up 0.3%, its fifth weekly gain in the past six weeks.
Major U.S. equities indexes surged to close out the week as Federal Reserve Chair Jerome Powell said the central bank could begin trimming interest rates as soon as next month.
Over the next few weeks, we expect a rally to ideally, and at least, 6560, from where a correction to 6335-6190 can materialize, followed by another rally to 6800.
Most investors who buy the Vanguard S&P 500 ETF (NYSEARCA:VOO) assume they already own the market's sweet spot.