The market has struggled to sustain any meaningful bounce, experiencing some of the sharpest sell-offs in recent weeks. This has largely been driven by the announcement of widespread tariffs impacting nearly every U.S. trade partner. Additionally, ongoing layoffs—both in the public and private sectors—have heightened fears of an economic downturn. With earnings season effectively over, the market lacks a strong catalyst for upside momentum, creating a challenging environment for investors.
This week, all eyes will be on key inflation data, with the Consumer Price Index (CPI) set for release pre-market on Wednesday, followed by the Producer Price Index (PPI) on Thursday morning. These reports will be critical in assessing inflationary pressures, particularly as the impact of tariffs may begin to surface in the February data.
With only a couple of major earnings reports on the schedule, market direction will likely be dictated by broader sentiment, which remains overwhelmingly negative due to trade war uncertainty. The unpredictability of tariff policies has kept investors on edge, which may encourage more profit taking and keep money on the sidelines for a little longer.
Monday
Earnings: ORCL
Tuesday
Wednesday
Consumer Price Index (CPI)
Earnings: ADBE
Thursday
Producer Price Index (PPI)
Friday
Tracking This Week
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Costco Wholesale (NASDAQ:COST) delivered solid Q2 results with continued growth, but lighter-than-expected earnings raised concerns about potential margin pressures, especially with looming tariffs. The uncertainty surrounding the Trump administration’s shifting stance on trade policies may keep negative pressure on the stock in the near term. However, Costco remains a strong long-term play with significant growth potential. Investors may find better entry points around key support levels, potentially closer to $900.
Taiwan Semiconductor (NYSE:TSM) remains stable just above the key $170 support level, with two strong bounces last week reinforcing confidence and potentially signaling a temporary bottom. The company’s announcement of an additional $100 billion investment provided a political win for President Trump, which could help shield TSMC and the broader semiconductor industry from further tariffs or restrictions. However, with the Trump administration’s track record of unpredictability, nothing is guaranteed.
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