Top 3 Catalysts For Nasdaq 100 And Dow Jones Indices This Week
The Nasdaq 100 and Dow Jones indices continued their recent bull run and ended last week at their all-time highs. This surge happened despite the elevated bond yields and the ongoing ceasefire between the US and Iran. This article highlight some of the top catalysts for the two blue-chip indices this week.
Nasdaq 100 And Dow Jones To React To US-Iran Deal
The blue-chip Nasdaq 100 and Dow Jones indices will be in the spotlight when the market reopens on Tuesday as investors react to the US-Iran deal to reopen the Strait of Hormuz.
This announcement came from President Donald Trump on Saturday, who promised to give further details soon. In a separate statement today, he said that he was in no hurry to reach a deal, meaning that details may come later this week.
There is also a risk that Trump may opt to strike Iran as the deal has received some pushback from allies like Sens. Lindsay Graham (R-S.C.) and Ted Cruz (R-Tex.).
A deal to reopen the Strait will be highly bullish for the stock market as it will lead to a lower inflation rate. It may also lower the possibility of the Federal Reserve hiking interest rates this year.
Top Technology And Retail Earnings
The Dow Jones and the Nasdaq 100 indices will also react to the upcoming corporate earnings. AutoZone (NYSE:AZO), the $50 billion auto retailer, will publish its earnings on Tuesday. Zscaler (NASDAQ:ZS) and Elbit Systems (NASDAQ:ESLT) will publish on the same day.
Marvell Technology (NASDAQ:MRVL), Salesforce (NASDAQ:CRM), Snowflake (NASDAQ:SNOW), Costco (NASDAQ:COST), and Dell (NASDAQ:DELL), will be the other top companies to watch.
The earnings season has been highly successful, with the S&P 500 Index having earnings growth of 28.3%. For example, NVIDIA (NASDAQ:NVDA), the biggest company in the US, said that its revenue grew to $81 billion in Q1. It expects the figure to jump to $91 billion this quarter.
The upcoming earnings will be important because companies like Marvell Technology and Dell are among the top players in the artificial intelligence industry. Salesforce, a member of the Dow Jones and Nasdaq 100, will shed color on the software industry. Retailers like Costco and Dollar Tree will provide more information on the state of the American consumers.
US Macro Data, Fed Speakers, And Bond Market
US stocks will also react to the upcoming macro data and statements by top Federal Reserve officials. These events, will, in turn, have an impact on the bond market.
The Conference Board will publish the latest consumer confidence report on Tuesday. Economists expect this report to show that confidence dipped in May amid elevated inflation. A report by Michigan University on Friday showed that confidence plummeted this month.
The other key data will come out on Thursday when the US will release the GDP and PCE numbers. PCE is crucial as it is the Federal Reserve's favorite inflation gauge.
Finally, some Federal Reserve officials like Lisa Cook and Lori Logan will speak. All these events, together with the US-Iran situation, will have an impact on the bond market, whose yields have surged in the past few months.
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