Following the economic symposium in Jackson Hole, the hope of interest rate cuts in the US in the near future is likely to remain one of the topics of conversation on the market. However, it remains to be seen how long the joy over the latest interest rate cut fantasies will last. Powell encouraged investors last Friday with regard to US interest rate cuts.
Uncertainty about developments in the Ukraine-Russia conflict could catch up with market participants sooner or later.
The publication of NVIDIA's quarterly figures is also likely to cast a shadow.
Fed chief signals possible interest rate cut - US central bank in delicate situation
"The stability of the unemployment rate and other labor market indicators allows us to proceed cautiously as we consider changing our monetary policy," Powell said in the US state of Wyoming.
The US Federal Reserve will not meet again as scheduled until September 17 to decide on future monetary policy.
Powell also said last Friday that the US labor market appears to be in balance. "However, it is an unusual equilibrium resulting from a marked slowdown in both the supply of and demand for labor." The Fed would also be in a delicate position. The tariffs introduced under Trump would also have an impact on inflation rates, so there is a risk of inflation returning.
Expectations of a diplomatic solution to the Ukraine-Russia conflict are fading
Developments in the Ukraine-Russia conflict are likely to remain a topic of discussion. US President Donald Trump recently dampened expectations of a quick diplomatic solution. According to his own statements, he will wait and see whether a meeting takes place between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky.
Various economic data in focus - tension ahead of US GDP data on Thursday
From the perspective of the economic calendar, the US new orders for durable goods are likely to be exciting on Tuesday (14:30).
New data on the development of consumer confidence should also be of interest (16:00).
In addition to the weekly initial claims for US unemployment benefits, the US gross domestic product (annualized) is particularly important to keep an eye on. Investors are likely to scan this data for monetary policy clues.
Personal consumption expenditure likely to send monetary policy signals on Friday
On Friday, the core PCE price index could attract particular attention (14:30). Consumer confidence (Uni Michigan) rounds off the trading week at 16:00.
The outcome of NVIDIA's quarterly figures could decide the weal and woe of the company
Market participants are likely to focus on NVIDIA's (ISIN: US67066G1040) business figures for the past quarter in the middle of the week. Earnings per share are expected to rise by 48% on sales of 45.9 billion dollars.
NVIDIA
Source: TradingView
Dow Jones Industrial Average Index
Source: TradingView
