S&P 500 ends winning streak – FOMC meeting highlights week ahead
|Also, Palantir, Disney, and AMD among notable earnings reports this week.
Last week, stocks were up for the second week in a row and the S&P 500 got back to where it was before the April 2 tariff announcement. Can the major indexes make it three weeks in a row of gains?
The S&P 500ʻs two-week surge has seen it move higher for 9 straight days, through Friday. That is the longest winning streak for the large-cap benchmark since 2004.
But the streak ended on Monday, as the S&P 500 was down 36 points, or 0.5%, while the Nasdaq Composite dropped 133 points, or 0.7%. The Dow Jones Industrial Average was off 88 points, or 0.2%, while the Russell 2000 fell 12 points, or 0.6%.
Tariffs continue to dominate the macroeconomic landscape and stocks markets, with the latest being a proposed 100% tariffs on movies made outside the U.S.
However, the White House released a statement following the initial President Trump social media post to say that “no final decisions on foreign film tariffs have been made,” according to USA Today.
FOMC meets Tuesday and Wednesday
This week, all eyes will be on the Federal Reserve’s Federal Open Market Committee (FOMC), which meets Tuesday and Wednesday on interest rates.
While the labor market has been solid and inflation has come down, there is little expectation for the FOMC to lower rates at this meeting, given the uncertain economic environment and tariff impact.
The key gauge for what the FOMC might do is the CME FedWatch survey, which polls interest rate traders on what they expect. As of Monday afternoon, 97% of those traders surveyed expect the Fed to keep rates at the current 4.25% to 4.50% range.
Further, the majority, 71%, expect the rates to stay the same even after the June meeting.
The July 25 FOMC is the meeting that most are targeting for a reduction in rates, with 56% calling for a 25-point cut and 18% expecting a 50-point reduction.
Palantir leads busy week for earnings
First quarter earnings season rolls on and one of the most anticipated companies to report this week is Palantir Technologies (NASDAQ:PLTR). Last year’s top performing large-cap stock reports earnings on Monday after the market closes.
Analysts anticipate earnings of 13 cents per share for Palantir, which is up 64% year-to-date and a ridiculous 435% over the past 12 months.
Other notable stocks reporting this week are hotel chain Marriott (NASDAQ:MAR) and chipmaker Advanced Micro Devices, or AMD (NASDAQ:AMD) on Tuesday; Walt Disney (NYSE:DIS) and sports betting site Flutter Entertainment (NASDAQ:FLUT) on Wednesday; crypto platform Coinbase Global (NASDAQ:COIN), sports betting site DraftKings (NASDAQ:DKNG), and fintech Affirm Holdings (NASDAQ:AFRM) on Thursday.
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