Top 5 events of the upcoming week

This week promises to be busy for the markets: investors are waiting for fresh reports from American technology companies, comments from Fed representatives after the rate cut, new inflation data and quarterly Costco reports. An additional factor of attention was the record gold prices.

1. Technology Sector Reports

The stock market is once again focused on the results of IT companies. Investors hope to receive new signals about the scale of the "AI boom", which largely supports the growth of stock indexes. On Tuesday, the report will be published by chip manufacturer Micron. Analysts expect positive results on the back of the successes of Broadcom and Oracle. On Thursday, they will be joined by Apple supplier Jabil, which relies on demand from data centers, and consulting company Accenture, whose prospects in the age of AI raise questions among analysts.

2. Speeches by representatives of the Federal Reserve

After the rate cut by 25 bps, attention turns to the Fed's rhetoric. The main event will be Jerome Powell's speech on Tuesday. He previously noted that the decision was dictated by the weakening of the labor market, but warned about the risks of sustained inflation. Not all members of the regulator supported the move – one of the participants even insisted on a 50bp reduction at once. Disagreements signal possible debates at future meetings.

3. Inflation Data (PCE)

On Friday, the key indicator for the Fed will be released – the core index of personal consumption expenditures (PCE). It is expected to grow by 0.2% in August against 0.3% a month earlier. However, recent data on consumer prices have already shown an acceleration in inflation to a maximum in seven months, which casts doubt on reaching the 2% target in the foreseeable future.

4. Costco Report

On Thursday, investors are waiting for the Costco network report. The market is evaluating how the company is coping with tariffs that have already led to price increases from competitors, including Walmart and Target. Although Costco promised to minimize the burden on customers, further measures will inevitably affect consumer spending.

5. Gold at record levels

Amid expectations of further rate cuts, gold prices have updated their historical high. A softer monetary policy reduces the opportunity costs of investing in the metal, increasing interest in it. An additional driver remains the upcoming inflation data and speeches by Fed representatives.