Investors are entering a week packed with tech earnings and important Federal Reserve commentary, coming shortly after the central bank’s recent interest rate cut and hints at further reductions. Market participants will also be watching new inflation data, while tariff-driven price pressures could influence results from warehouse retailer Costco.
Tech Sector Results Take Center Stage
This week, U.S. tech earnings could provide insight into the ongoing surge of interest in artificial intelligence (AI). The technology’s rapid adoption has fueled broader market rallies, making updates from AI-focused companies particularly important.
Micron (NASDAQ:MU) is scheduled to report Tuesday after the market closes. 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 major Apple supplier that has invested heavily in AI-powered data centers, will release its quarterly results, along with consulting giant Accenture (NYSE:ACN). Analysts have flagged concerns regarding how AI may affect Accenture’s business performance.
Fed Commentary in Focus
Following last week’s 25-basis-point rate cut, traders are closely monitoring statements from Federal Reserve officials. Fed Chair Jerome Powell is scheduled to speak Tuesday and emphasized that the rate reduction was driven 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, the rate cut did not have unanimous support. One official—believed to be Fed Governor Stephen Miran—advocated for a deeper 50-basis-point reduction. Seven of 19 meeting participants projected no further cuts this year, while others expect additional reductions, suggesting lively debate at upcoming meetings.
Inflation Data to Watch
On Friday, the core personal consumption expenditures (PCE) price index for August, the Fed’s preferred inflation measure, will be released. The metric is forecast to rise 0.2% month-on-month, compared with 0.3% previously. BNP Paribas analysts noted that the data indicate inflation is “unlikely to land” at the Fed’s 2% target “anytime soon.”
Costco Earnings in Focus
Costco (NASDAQ:COST) will release quarterly results Thursday. Investors will look for insights on how the warehouse retailer is navigating U.S. tariffs, which it previously described as a “last resort” for raising prices.
Peers such as Walmart (NYSE:WMT) and Target (NYSE:TGT) have already passed some costs to consumers, while Best Buy reported tariff-related price hikes below the overall rate. A University of Michigan consumer sentiment survey highlighted that “trade policy remains highly salient” in shaping household spending patterns.
Gold Reaches New Record
Gold prices touched fresh highs Monday, buoyed by expectations of additional U.S. interest rate cuts following the Fed’s recent move. Investors remained focused on bullion ahead of further economic readings, including the Fed’s preferred inflation gauge, with several policymakers scheduled to speak.
Lower rates are favorable for non-yielding assets like gold, as they reduce the opportunity cost of holding bullion. Other metals also saw gains after the Fed’s announcement. Spot gold rose 0.9% to $3,715.50 per ounce, while gold futures climbed 1.2% to $3,750.20/oz by 03:32 ET.
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