Macro Events & News
Markets traded higher this week ahead of the Federal Reserve’s September 16–17 policy meeting, where investors expect more clarity on the path of interest rates. Technology and AI-related names outperformed after Oracle (NYSE: ORCL) issued stronger forward guidance tied to AI demand, even as it missed both revenue and earnings estimates for the quarter.
On the macro side, inflation data was in focus. The August CPI showed core inflation up 3.1% year over year and core PPI up 2.8%, both in line with expectations but still elevated. The data, released by the Bureau of Labor Statistics, comes amid ongoing scrutiny of the agency’s accuracy following repeated revisions to labor figures. The department remains under interim leadership after President Trump removed the prior commissioner in July following a weak jobs report.
Trade developments were muted, with most participants appearing to be in a holding pattern ahead of the Supreme Court’s November review of tariff legality. Notable headlines included China launching anti-dumping and discrimination probes into U.S. chip exports, Japan announcing that U.S. reciprocal tariffs on Japanese autos and auto parts will be reduced by mid-September, and Mexico moving to impose a 50% tariff on Chinese cars under U.S. pressure. Meanwhile, the Supreme Court set September 19 as the deadline for opening briefs in the tariff case, with a stay on the appellate ruling to expire October 14 unless extended.
The 10-year Treasury yield was relatively flat and remained at 4.07% and the VIX fell back to 14.76.
All the major indexes ended higher for week: the Dow up 1%, the S&P 500 up 1.5%, and the Nasdaq led gaining 2%.
Watchlist News
3% ▼
Salesforce Inc (NYSE:CRM) slipped this week, weighed down by the persistent narrative that AI could eventually displace traditional enterprise software. Strong results from Oracle and a fairly average quarter from Adobe reinforced that storyline and added pressure to the name.
10% ▲
GameStop Corporation (NYSE:GME) proved it’s more than just a meme play, delivering a profitable quarter with renewed growth in its core business. The company also sits on over $8 billion in cash, giving it significant flexibility. The decision to issue warrants rather than pay dividends likely capped the upside reaction.
6% ▲
NVIDIA Corporation (NASDAQ:NVDA) rebounded after a sharp selloff tied to Broadcom’s strong earnings the week prior. The fear of losing market share drove the stock lower than fundamentals warranted, as demand for the generalized AI solutions that NVIDIA dominates remains firmly intact.
13% ▲
Tesla Inc (NASDAQ:TSLA) broke out of its recent consolidation with a sharp rally, though the move wasn’t driven by fundamentals. Instead, gains came after the board stated that CEO Elon Musk is not expected to play a heavy role in politics, providing enough relief for a sentiment-driven pop.
