Fedwatch

Key events: Switzerland - PPI (MoM) (Aug) Eurozone - ECB's De Guindos Speaks Eurozone - Wages in euro zone (YoY) (Q2) Eurozone - Trade Balance (Jul) Eurozone - ECB's Lane Speaks USA - NY Empire State Manufacturing Index (Sep) Wall Street’s major indices finished the week on a positive note, with investors focused on the possibility of a larger interest rate cut from the Federal Reserve in the upcoming week. Small-cap stocks, which are more sensitive to rate changes, led the market gains.

Key events: Japan - GDP (QoQ) (Q2) The Dow Jones Industrial Average dropped 400 points on Friday after the US nonfarm payrolls (NFP) report fell short of expectations, along with a downward revision to previous data. The uneven job growth added to the signals of a slowing US economy, but not to the extent that would strengthen expectations for a double rate cut from the Federal Reserve later this month.

Key events: UK - Core Retail Sales (MoM) (Jul) USA - Building Permits (Jul) USA - Michigan Consumer Sentiment USA -Housing Starts (Jul) The S&P 500 extended its winning streak to six sessions on Thursday, as concerns over a potential economic slowdown eased after stronger-than-expected labor market and retail sales reports. The Dow Jones Industrial Average climbed by 555 points, or 1.4%, the S&P 500 increased by 1.6%, and the NASDAQ Composite saw a 2.3% rise. 

Key events: USA - OPEC Monthly Report Canada - Building Permits (MoM) (Jun) USA - Federal Budget Balance (Jul) The S&P 500 closed Friday higher, led by gains in the tech sector, as stocks continued to recover from a sharp selloff earlier in the week, which was driven by recession fears.

Key events: USA - PPI (MoM) (Jun) Canada - Building Permits (MoM) (May) USA - Michigan Consumer Sentiment US stocks fell on Thursday despite inflation data suggesting a slowdown in the US economy, which raised the possibility of Federal Reserve interest rate cuts later this year.

Key events: UK - GDP (MoM) (May) USA - Core CPI (MoM) (Jun) USA - Initial Jobless Claims USA - 30-Year Bond Auction The S&P 500 closed above 5,600 for the first time on Wednesday, propelled by tech stocks and continued hopes for an earlier rate cut as Fed Chair Jerome Powell delivered his second day of testimony before Congress, a day ahead of new inflation data.

Key events: USA - Fed Chair Powell Testifies USA - Crude Oil Inventories USA - 10-Year Note Auction USA - FOMC Member Bowman Speaks USA - Fed Goolsbee Speaks The S&P 500 closed at a record high for the fifth consecutive session on Tuesday as Federal Reserve Chair Jerome Powell's testimony didn't deter investors from expecting a rate cut in September.

Key events: Eurozone - ECB McCaul Speaks Eurozone - ECB's Schnabel Speaks Canada - BoC Gov Macklem Speaks USA - FOMC Member Daly Speaks On Friday, US stocks experienced a mixed performance after the market closed. Gains in the Consumer Services, Telecoms, and Consumer Goods sectors propelled some shares higher, while declines in the Oil & Gas, Technology, and Utilities sectors dragged others lower.

Key events: USA - S&P Global US Manufacturing PMI (Jun) USA - S&P Global Services PMI (Jun) USA - Existing Home Sales (May) USA - Fed Monetary Policy Report The S&P 500 dipped after briefly surpassing the 5,500 milestone for the first time ever on Thursday, as Nvidia's decline dragged the broader tech sector down. The S&P 500 dropped 0.4% after hitting a record high of 5,505.23. The NASDAQ Composite decreased by 1%, while the Dow Jones Industrial Average rose by 253 points, or 0.7%.

Key events: UK - BoE MPC Member Broadbent Speaks USA - FOMC Member Bostic Speaks USA - Fed Vice Chair for Supervision Barr Speaks USA - Fed Waller Speaks USA - FOMC Member Mester Speaks Friday saw the Dow achieving a historic milestone, surpassing 40,000 for the first time ever. This achievement marked a fifth consecutive week of gains, fueled by optimism surrounding potential rate cuts and predominantly positive quarterly earnings reports from corporations, igniting bullish sentiment in the stock market.