The S&P 500 closed out last week with an impressive nine-day winning streak, a feat unseen in two decades. This rally, erasing all losses since the announcement of President Trump’s reciprocal tariffs, has investors buzzing. But will the momentum continue? This week, two major factors will determine whether the index can achieve a historic ten-day run.
First, the Federal Reserve’s policy meeting, starting Tuesday and concluding Wednesday, will be closely watched. The Fed is expected to maintain interest rates, but Chairman Powell’s press conference will be crucial. Investors will be keen to understand how recent economic data, particularly the impact of tariffs, has influenced his assessment of price stability and maximum employment. Powell’s response to questions about President Trump’s criticism of his performance and the importance of central bank independence will also be significant.
Secondly, several key earnings reports are scheduled this week. Coterra Energy, Disney, and Texas Roadhouse are among the companies releasing their results. Coterra’s performance will be heavily influenced by oil and natural gas prices, while Disney’s report will reveal the success of CEO Bob Iger’s restructuring efforts and the impact of the economic climate on its theme parks and streaming services. Texas Roadhouse’s results will offer further insights into consumer spending trends and competition within the restaurant sector.
Beyond these major events, a number of other companies will be reporting earnings, offering a broader picture of the market’s health. The week’s economic calendar also includes the ISM Services PMI and initial jobless claims data, providing additional indicators of economic activity. Keep in mind that while the market experienced a significant upswing last week bolstered by strong jobs numbers and positive trade negotiation signals, the short-range oscillator has entered overbought territory for the sixth consecutive session. This warrants caution and a potentially more conservative investment approach. The coming week promises to be pivotal for the market, and careful analysis of both macroeconomic factors and individual company performance will be critical for investors.
Remember, this analysis does not constitute financial advice. Always conduct thorough research and consider consulting with a financial advisor before making any investment decisions.
