Unstoppable Dow: 10-Day Winning Streak Powered by Tech Stocks
US stocks continue on an upward trajectory as the Dow Jones Industrial Average prepares to chalk up its 10th consecutive day of gains, largely buoyed by the tech and mega-cap stocks. At 10:48 ET (14:48 GMT), the Dow had risen by 66 points or 0.2%. Concurrently, the S&P 500 and the NASDAQ Composite showed promising growth, increasing by 0.3% and 0.2% respectively.
Bright Economic Prospects Drive Nasdaq's Stellar Growth
The tech-oriented Nasdaq has soared by 34.4% this year alone, reflecting growing investor optimism around artificial intelligence and the anticipated conclusion to the Federal Reserve's rate hikes. In light of the robust industrial sector and federal infrastructure spending, Morgan Stanley has upgraded its economic growth forecast for the year, predicting a soft landing for the economy.
Anticipated Federal Reserve Rate Moves Under the Spotlight
The focus is now on the Fed's forthcoming rate decisions. Futures traders are predicting a quarter-point rate increase at the next meeting, eagerly awaiting Chair Jerome Powell's comments during Wednesday's press conference for further indications of the Fed's next steps. In the face of a resilient economy and a tight labor market, the Fed's objective is to bring inflation back to the 2% annual target - a task that has proven to be a consistent challenge.
Upcoming Economic Reports to Watch
The coming week is brimming with important economic updates. It will feature a report on the second-quarter gross domestic product and the latest reading on inflation via the personal consumption expenditure index. Furthermore, the University of Michigan's latest reading on consumer sentiment is due next Friday. As these reports loom, traders remain unsure of the Fed's course of action post the upcoming meeting. Some predict a pause in September and another rate increase in November.
American Express Shares Dip Despite Beating Expectations
Despite surpassing expectations with record spending by card members, shares of American Express Company (NYSE: AXP) dipped by 3.9% as the company maintained its full-year forecast. Similarly, AutoNation Inc (NYSE: AN) saw a 7% fall in its stock after the auto retailer reported a significant decline in used-vehicle sales and a surge in expenses, overshadowing better-than-expected quarterly sales.
