Investors are bracing for a week packed with U.S. tech earnings and key Federal Reserve commentary, just days after the central bank cut interest rates and indicated more reductions could be on the horizon. Analysts will also be keeping an eye on fresh inflation data, while tariff-related price pressures could influence the results from warehouse retailer Costco.
Tech Earnings in Focus
The spotlight this week is on tech sector results, which may offer insights into the ongoing surge in enthusiasm around artificial intelligence (AI). The rapid adoption of AI has fueled broader market rallies, making updates from companies leveraging the technology especially important.
Micron (NASDAQ:MU) is scheduled to report Tuesday after the close. Analysts at Vital Knowledge noted that “sentiment has been upbeat around the chipmaker, especially in the wake of blockbuster returns from peers like Broadcom (NASDAQ:AVGO) and Oracle (NYSE:ORCL) as well as a range of favorable sell-side preview notes.”
On Thursday, Jabil (NYSE:JBL), a supplier to Apple heavily invested in AI-powered data centers, will release quarterly results, along with consulting giant Accenture (NYSE:ACN). Analysts have warned of potential risks to Accenture’s business stemming from AI developments.
Fed Speakers in Focus
After last week’s 25-basis-point rate cut, market participants are closely watching remarks from Federal Reserve officials. Fed Chair Jerome Powell will speak Tuesday. Powell highlighted that the rate reduction was driven primarily by a weakening U.S. labor market.
“We have to keep our eye on inflation at the same time, we cannot ignore […] maximum employment,” Powell said.
However, not all Fed officials supported the cut. One member—believed to be new Fed Governor Stephen Miran—called for a deeper 50-basis-point reduction. Seven of the 19 meeting participants forecast no further cuts this year, while others expect additional reductions, suggesting upcoming meetings could see robust debate.
PCE Data on Tap
Friday will bring the release of the core personal consumption expenditures (PCE) price index for August, a key Fed gauge of inflation. The measure is expected to rise 0.2% month-on-month, compared with 0.3% in the prior reading. Analysts at BNP Paribas highlighted that the figures suggest inflation is “unlikely to land” at the Fed’s 2% target “anytime soon.”
Costco Reports Earnings
Costco (NASDAQ:COST) will release its quarterly results Thursday. Investors will monitor how the membership-based retailer is navigating U.S. tariffs, which the company previously said would be a “last resort” for raising prices.
Peers including Walmart (NYSE:WMT) and Target (NYSE:TGT) have already passed some costs to consumers, while electronics retailer Best Buy noted tariff-related increases were lower than the overall rate. A University of Michigan survey highlighted that “trade policy remains highly salient” in shaping consumer spending sentiment.
Gold Hits Record Levels
Gold climbed to a new record on Monday, supported by expectations of additional U.S. rate cuts following the Fed’s recent action. Markets are maintaining a bullish stance on the yellow metal ahead of further economic readings, including the Fed’s preferred inflation gauge, with several policymakers scheduled to speak.
Lower interest rates generally benefit non-yielding assets like gold, reducing the opportunity cost of holding bullion. Other metals also rallied after the Fed’s move. Spot gold increased 0.9% to $3,715.50 per ounce, while gold futures rose 1.2% to $3,750.20/oz by 03:32 ET.
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