3 Market Shocks That Could Move Markets This Week
AT A GLANCE
- Friday’s CPI report could decide whether the Fed hikes rates in September
- Oracle reports Thursday, offering a gut-check on Big Tech’s AI debt binge
- US diesel just hit an all-time high of $5.85 a gallon
- Nasdaq, S&P 500, and Dow all closed lower heading into the week
A holiday-shortened week is packed with data that could decide the Fed’s next move and expose cracks in the AI spending boom.
Wall Street is walking into a short trading week carrying a lot of unfinished business. A blowout jobs report barely moved the needle on rate-cut odds, so now it’s inflation data and Oracle’s earnings doing the heavy lifting.
KEY DETAILS
August payrolls came in at 162,000, crushing the 55,000 forecast, yet Fed hike bets barely shifted. That puts Friday’s CPI (expected +0.4% month-over-month, +3.4% year-over-year) in the spotlight, with Thursday’s PPI as a preview. Oracle reports Thursday alongside Adobe and Macy’s; Bank of America expects Oracle’s cloud infrastructure revenue to jump 116% year-over-year, even as the stock has dropped nearly 30% over the past year on debt worries.
MARKET REACTION
The Nasdaq slipped 0.3%, the S&P 500 fell 0.4%, and the Dow dropped 0.5% to close out last week.
Fed Chair Kevin Warsh has made inflation his singular focus, and this week’s numbers could tip the September decision either way. Meanwhile, record diesel prices, driven by conflicts in Iran and Ukraine, threaten to ripple through shipping costs and consumer prices right as winter demand kicks in.
Watch CPI Friday, Oracle Thursday, and diesel prices all week; each could set the tone for markets into fall.
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Source: Yahoo Finance
