📷 Image Credits: Investing.com
Investing.com– The stock markets continue to thrive as the S&P 500 closed at a record high for the fifth consecutive session. Despite Federal Reserve Chair Jerome Powell’s testimony, investors remain optimistic about a potential rate cut in September. The S&P 500 reached a new all-time closing high of 5,577.03, while the NASDAQ Composite extended its record run, and the Dow Jones Industrial Average experienced a slight dip. Powell indicated that the economy is no longer “overheated” and emphasized the importance of good economic data in the upcoming months to support potential interest rate adjustments. Investors are eagerly awaiting the consumer price index inflation data for June, which will provide further insights into inflation trends and potential rate cuts. The CME Fedwatch tool currently shows a high probability of a 25 basis point cut in September, signaling a growing expectation among traders. The focus this week is also on the second quarter earnings season, set to begin with major banks like JPMorgan Chase, Wells Fargo, and Citigroup reporting their quarterly results. Companies like PepsiCo and Delta Air Lines are also expected to release their earnings reports, with analysts forecasting a 10.1% increase in aggregate earnings per share for S&P 500 companies. Additionally, tech giants like Intel and Nvidia are experiencing gains, especially with the rising demand for artificial intelligence. NVIDIA Corporation recently saw a price target upgrade due to increased AI demand, while Tesla Inc. received a positive rating amid its success in the global battery electric vehicle market. Meanwhile, Helen of Troy Ltd. faced a significant stock drop after revising its full-year guidance following lower-than-expected earnings. The rejection of Bain Capital’s $1.2 billion bid by Bapcor Ltd., an Australian automotive parts retailer, highlights the dynamics of the current market environment and the strategic decisions being made by industry players.
