Market Overview
The S&P 500 futures gained momentum on Monday morning following a remarkable performance by equities last week. The broad-based index posted a 3.9% advance for the week, marking its best weekly performance of 2024. The rally extended to other major indices, with the Dow Jones Industrial Average rising by 2.9% and the Nasdaq Composite surging 5.3%.
Economic Data and Market Impact
Recent economic data contributed significantly to the market’s positive shift:
Inflation and Retail Sales: Cooling inflation combined with robust retail sales figures suggested a potential soft landing for the U.S. economy. This alleviated some of the recession fears that had been prevalent following weaker-than-expected job numbers for July.
Federal Reserve Expectations: The positive economic indicators have bolstered expectations that the Federal Reserve will implement at least a 25 basis point interest rate cut in September. This anticipation further fueled the risk-on sentiment observed in the markets last week.
Upcoming Market Events
The focus now shifts to the Jackson Hole Economic Symposium, a key annual event hosted by the Federal Reserve Bank of Kansas City. The symposium, which begins this week, will feature a high-profile speech from Fed Chair Jerome Powell. Traders and investors are keenly awaiting Powell’s insights on the Fed’s interest rate cut timeline and other monetary policy considerations.
Summary
The S&P 500 futures are up as investors respond to a strong performance across major indices last week. With favorable economic data and expectations of a potential rate cut by the Federal Reserve, markets are poised for a potentially volatile week as they await further guidance from the Jackson Hole symposium.
