Last Week's Stock Market Action (Jan 15th - Jan 20th)
Overall, last week's market was positive, with major indices closing higher:
- S&P 500: +1.2% (4,839.81)
- Dow Jones Industrial Average: +1.1% (37,863.80)
- Nasdaq Composite: +2.3% (15,310.97)
Drivers of the Market:
- Technology sector outperformance: Semiconductor stocks like NVIDIA and AMD led the gains, fueled by investor optimism about their growth prospects.
- Mixed earnings reports: Early fourth-quarter earnings results were mixed, but mostly in line with expectations.
- Muted impact of holidays: The market was shortened due to the Martin Luther King Jr. holiday, contributing to lower trading volume and potentially less volatility.
Potential Market Moving Events this Week (Jan 22nd - Jan 27th)
- Economic reports:
- Tuesday: Existing Home Sales
- Wednesday: Federal Open Market Committee (FOMC) minutes release
- Thursday: Initial Jobless Claims, Philadelphia Fed Manufacturing Index
- Friday: Consumer Sentiment Index
- Earnings reports:
- Several major companies including Microsoft, Tesla, Boeing, and Johnson & Johnson are expected to report this week.
Potential Impact:
- FOMC minutes: The minutes from the latest FOMC meeting could offer insights into the Federal Reserve's thinking on future interest rate decisions, impacting investor sentiment.
- Earnings reports: Strong earnings reports could further boost market optimism, while weak results could lead to individual stock or sector-specific volatility.
- Economic data: Depending on the strength of the data, it could influence monetary policy expectations and market sentiment.
Overall:
This week is likely to be busier for the market, with several key events that could drive volatility. Investors should keep an eye on economic data, earnings reports, and Fed commentary for potential market-moving signals.