Weak US jobs data and strong corporate reports propel S&P 500 to new all-time high

An unexpected increase in job cuts during July triggered a significant rally in the US stock market, leading the S&P 500 index to yet another record close. Market participants interpreted the weak macroeconomic indicators as a positive signal for monetary policy, hoping that a cooling labor market will prompt the Federal Reserve to definitively halt interest rate hikes and maintain them at current levels.

An additional fundamental driver for the market's rally was the strong performance reported during the ongoing corporate earnings season. The published financial results showed the highest growth rate in company profits since the second quarter of 2021, with 86% of issuers exceeding analysts' preliminary forecasts, confirming the strong adaptability of businesses. Follow the link for more details.

Downgrade from Jefferies and cancellation of promising developments weigh on Apple shares in pre-market trading

Apple's stock faced selling pressure, losing 1.2% in value during pre-market trading. The negative trend was triggered by analysts at investment bank Jefferies downgrading the tech giant's shares, coupled with reports about the cancellation of ambitious plans for a fully glass iPhone. Investors are concerned that a retreat from innovative concepts, combined with increasing geopolitical and regulatory risks, could limit the company's revenue growth.

Additional tension in the tech sector was created by the publication of test results for memory chips from Chinese manufacturer CXMT. The situation regarding the supply of key semiconductor components and potential logistical disruptions has heightened uncertainty among Apple's partners, prompting investors to exercise caution in assessing hardware sector stocks. Follow the link for more details.

US stock indices end week with strong rally in anticipation of fresh inflation data

A sharp decrease in the likelihood of further monetary tightening by the Fed propelled US markets to a strong weekly gain. Over the course of five trading sessions, the S&P 500 gained 3.6%, once again setting a historical high, while the tech-heavy Nasdaq rose by an impressive 5.2%. The recalibration of market expectations followed an unexpected decline in job numbers for July, which investors viewed as a clear sign of an economic slowdown.

Now, the key focus for market participants becomes the upcoming block of macroeconomic statistics on inflation, expected to either confirm or contradict the emerging trend. If the figures indicate easing inflationary pressures, the bullish momentum on Wall Street could continue. Tracking the performance of the S&P 500 and market reactions to earnings reports is most conveniently done through InstaForex. Follow the link for more details.