What To Expect in Markets This Week: The Latest Inflation Figures, Earnings and More

Introduction to This Week’s Market Watch

Inflation will be a major focus this week, with fresh data set to be released that could significantly influence the Federal Reserve’s stance on interest rate cuts. Several key companies are also slated to report their earnings, including Cisco Systems, CoreWeave, and Circle, which could provide valuable insights into the current state of the tech industry, particularly in AI infrastructure spending and developments in the cryptocurrency sector.

Key Takeaways for the Week

• Inflation data, including the Consumer Price Index for July, is expected to be released.
• Several major tech companies will report their earnings, offering a glimpse into the health of the tech sector.
• Federal Reserve officials, such as Richmond Fed President Tom Barkin, Chicago Fed President Austan Goolsbee, and Atlanta Fed President Raphael Bostic, are set to deliver remarks that could provide clarity on the potential for interest rate cuts.

Inflation Data and Its Impact on Interest Rates

The upcoming release of the Consumer Price Index (CPI) for July is highly anticipated, as it will provide the latest snapshot of inflation in the economy. Wholesale inflation data will follow, and the week will conclude with the release of consumer sentiment survey results, which will show how the public perceives current inflationary pressures. These data points are crucial as they will influence the Federal Reserve’s decision-making process, particularly regarding interest rates. With some Fed officials hinting at the possibility of rate cuts sooner rather than later, especially after a weaker-than-expected jobs report, the inflation data will be closely watched.

Tech Earnings: Insights into AI and Cryptocurrency

This week, several tech companies will report their earnings, which will be closely scrutinized for signs of growth or slowdown in the tech sector. Circle, a stablecoin issuer, will report its earnings after the U.S. provided legislative clarity on stablecoins, which has boosted the cryptocurrency market. Cisco Systems, a networking giant, will also report, following strong results last quarter driven by increasing demand for AI infrastructure. Additionally, CoreWeave, a cloud computing firm and partner to Nvidia, is set to report its earnings, having recently announced a significant investment in a Pennsylvania data center. These reports will offer valuable insights into the trends in AI and cryptocurrency.

Calendar of Key Events

• Monday, August 11: Earnings reports from Monday.com and Oklo.
• Tuesday, August 12: Release of the Consumer Price Index (July), remarks by Richmond Fed President Barkin, and earnings reports from CoreWeave, Circle Internet Group, Cava Group, and Smithfield Foods.
• Wednesday, August 13: Remarks by Chicago Fed President Goolsbee and Atlanta Fed President Bostic, and earnings report from Cisco Systems.
• Thursday, August 14: Release of the Producer Price Index (July), remarks by Richmond Fed President Barkin, and earnings reports from Applied Materials, Deere, and JD.com.
• Friday, August 15: Release of U.S. retail sales (July), consumer sentiment – preliminary (August), and other economic data.

Conclusion

This week is poised to be significant for market watchers, with a focus on inflation data and tech earnings. The releases and reports scheduled will provide critical insights into the state of the economy and the tech industry, influencing decisions on interest rates and investments. As the market navigates these developments, it will be essential to closely follow the data and remarks from Federal Reserve officials to gauge the direction of the economy in the coming months.