The S&P 500 continued its record-breaking streak on Monday, closing at all-time highs for a fourth consecutive session despite cautious sentiment ahead of key events this week. Federal Reserve Chair Jerome Powell is set to testify before Congress, with the focus likely to be on monetary policy. Powell had previously indicated that the Fed was making progress on inflation but was not yet ready to adjust rates. However, weaker-than-expected labor data has raised hopes for a rate cut.
Investors are eagerly awaiting the release of the Consumer Price Index (CPI) data on Thursday, which is expected to show a rise in inflation. Traders are already pricing in a high chance of a rate cut in September. In addition to rate expectations, the focus this week will also be on the start of the second-quarter earnings season. Heavyweight banks like JPMorgan Chase, Wells Fargo, and Citigroup are set to report earnings on Friday, giving insight into how companies are faring amid high interest rates and inflation.
In other news, Paramount Global saw its stock drop after announcing a merger with Skydance Media, while Boeing agreed to plead guilty to a criminal fraud conspiracy charge related to the 737 MAX crashes. On a positive note, Corning Incorporated raised its Q2 sales and earnings guidance, sending its shares soaring to new highs.
Overall, the market remains optimistic despite uncertainties, with investors closely monitoring upcoming events and earnings reports for further direction.
