Markets went into late August braced for three big events: the PCE inflation reading, Nvidia (NVDA) earnings, and the Jackson Hole gathering. Traders spent the past two weeks nervous ahead of them. The market got through all three without cracking, even with inflation still sticky and a Fed that sounded hawkish.
Strong tech earnings did most of the work. Nvidia (NVDA) rose the day after reporting for the first time in five quarters and closed the week up 1%. That pulled the tech sector out of the quiet, weak mood it had been stuck in.
Worries remain. Long-dated bonds are still a concern, along with geopolitics tied to Iran and fresh tariff pressure. The day's data showed some of that strain. The University of Michigan consumer survey showed sentiment falling from the prior month, with inflation fears still high. The drop hit hardest among older consumers, lower- to mid-income households, and people who own no stocks.
The week showed a split market. AI-driven growth keeps the economy moving, while the consumer feels squeezed by inflation and high mortgage rates.
The week ahead
Next week starts a new month that tends to be seasonally weak. The macro calendar brings a fresh read on jobs with Friday's employment report, plus a batch of PMIs and the trade balance. Kevin Warsh called the labor market stable.
Earnings season is near its end, but a few big names still report. Broadcom (AVGO) is the key one to watch. Other notable tech results come from Dell (DELL), Palo Alto Networks (PANW), Hewlett Packard Enterprise (HPE), Snowflake (SNOW), and Zscaler (ZS), spanning both tech hardware and software. The question is whether the market keeps the firmer price action seen after solid earnings on Wednesday afternoon into Thursday.
