A trader reacts connected the level astatine the New York Stock Exchange successful New York City, U.S., August 22, 2025.
Brendan McDermid | Reuters
U.S. equity futures were level connected Sunday nighttime aft the Dow Jones Industrial Average catapulted to caller intraday and closing records and arsenic investors looked up to Nvidia earnings.
Futures tied to the Dow inched higher by 19 points, oregon 0.04%. S&P 500 futures and Nasdaq 100 futures hovered supra the level line.
On Friday the blue-chip Dow soared 846.24 points, oregon 1.89%, to 45,631.74. The wide market S&P 500 rose 1.52% to 6,466.91. At its league high, it came wrong 3 points of its record. Meanwhile, the tech-heavy Nasdaq Composite gained 1.88%, ending the league astatine 21,496.53.
Stocks rallied aft Federal Reserve Chair Jerome Powell's wide anticipated yearly code successful Jackson Hole, Wyo., successful which helium signaled the cardinal bank could begin easing monetary policy next month. Expectations for a quarter-point complaint chopped successful September jumped to astir 84% according to the CME Group's FedWatch tool, from astir 75% earlier successful the week.
"We person seen the ingredients of a imaginable rotation commercialized retired of tech into much cyclical and worth stocks, and truthful to the grade you bash spot much anticipation of a Fed easing cycle, that momentum commercialized retired of tech tin continue," said Adam Crisafulli, laminitis of Vital Knowledge. "That puts a batch of unit connected biggest reports this coming Wednesday."
Dell and Marvell volition besides study net connected Thursday. Those names could play a cardinal relation successful determining whether the tech rally is backmost connected oregon if there's further to spell successful the rotation trade, Crisafulli said.
In the week ahead, traders are besides looking guardant to Friday's July idiosyncratic depletion expenditure terms index, the Fed's preferred ostentation gauge. Economists polled by FactSet expect halfway PCE, which strips retired volatile nutrient and vigor prices, volition emergence 2.9% connected a year-over-year basis, compared to its 2.8% increase in June.
Yardeni maintains S&P people contempt Fed easing expectations
The marketplace whitethorn person rallied past week connected Fed Chair Jerome Powell's remarks hinting astatine complaint cuts, but August's CPI and employment reports, and perchance a "few" different indicators, mightiness person the FOMC to clasp disconnected connected easing if they are hotter than expected, according to Wall Street strategist Ed Yardeni.
"That's wherefore we are sticking we are sticking with our associated targets for the S&P 500 of 6,600 by year-end 2025 and 7,700 astatine the extremity of adjacent year," Yardeni wrote Sunday. "We delegate that base-case scenario a subjective probability of 55% ... A meltup volition beryllium much apt if the Fed eases successful September, arsenic wide expected," which could assistance the scale to 7,000 by year-end 2025, helium added. "We expect that the bull marketplace volition beryllium progressively earnings-led alternatively than valuation-led done 2026."
— Tanaya Macheel
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