Last week saw increased market volatility with growth stocks taking significant hits on Friday, particularly in AI and tech names. The S&P 500 ($SPX) (SPY) pulled back from recent all-time highs as traders reassessed valuations in high-growth sectors.
Here are 5 things to watch this week in the Market.
NVIDIA Earnings
Wednesday's Nvidia (NVDA) earnings report could be the most significant market event this week. Given the company's central role in the AI boom and its massive influence on market sentiment, this report will be closely watched. Beyond the numbers themselves, guidance and commentary about AI chip demand could impact the entire tech sector. With the stock up over 95% in the past twelve months, expectations are high and the reaction could be volatile in either direction.
Key Economic Growth Data
Thursday brings the second reading of Q4 GDP at 8:30 am. While this is a revision of the advance number, any significant changes could impact market sentiment about economic strength. This report takes on additional importance as traders try to gauge whether the economy is maintaining its resilience or showing signs of slowing. The data could influence expectations about Fed policy and the timing of potential rate cuts.
Core PCE Price Index
Friday's Core PCE Price Index at 8:30 am is the Federal Reserve's preferred inflation gauge. After recent hotter-than-expected CPI and PPI readings, this report will be crucial for rate cut expectations. Any upside surprise in inflation could further push back rate cut timing and pressure stocks, while a cooler reading might reignite hopes for earlier monetary easing.
Housing and Consumer Data
Several important consumer and housing indicators are due this week. Tuesday's Consumer Confidence report at 10 am will show if recent market gains and cooling inflation are boosting sentiment. Wednesday's New Home Sales data will provide fresh insights into housing market strength amid still-elevated interest rates. These readings could impact consumer discretionary stocks like Home Depot (HD), which reports earnings Tuesday.
Growth Stock Fallout
Following Friday's sharp declines in growth stocks like Palantir (PLTR), AppLovin (APP), and Hims & Hers Health (HIMS), traders will watch for potential continued volatility in these names. The selloff could signal a broader reassessment of valuations in high-growth sectors. Other notable earnings this week from Salesforce (CRM) and Snowflake (SNOW) could either calm or amplify these concerns.
Best of luck this week and don't forget to check out my daily options article.
