The market’s weakness last week was surprising, given that NVIDIA’s earnings reinforced the strength of the AI narrative and Personal Consumption Expenditures (PCE) data aligned with expectations, easing immediate inflation concerns. However, bearish factors such as the inversion of bond yields— with the 10-year yield falling below the 3-year— along with declining consumer sentiment, have fueled fears of an economic slowdown. These concerns are further exacerbated by President Trump’s announcement that tariffs are back on the table, set to take effect in March.
Looking ahead, this week brings key economic indicators that could shape market sentiment, with Purchasing Managers’ Index (PMI) reports scheduled for Monday and Wednesday. Additionally, several major retailers will report earnings and provide guidance, offering insight into consumer spending trends and the broader economic picture. Trade policy remains a wildcard, as continued uncertainty and tariff threats weigh on market confidence.
If economic data and earnings reports fail to stoke further fears, we could see the beginning of a recovery from February’s disappointing performance.
Monday
S&P/ISM Manufacturing PMI
Tuesday
Earnings: TGT CRWD
Wednesday
S&P/ISM Services PMI
Earnings: MRVL ZS
Thursday
Earnings: JD AVGO COST
Friday
US Jobs Report
Tracking This Week
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NVIDIA Corporation (NASDAQ:NVDA) delivered another strong earnings report last week, yet the stock ended lower. While concerns over shrinking margins and weakness in the Gaming segment have been cited as possible reasons, these explanations seem more like attempts to justify the unexpected decline. Given the continued strength of its Data Center business and overall AI momentum, the selling pressure is unlikely to persist, and NVIDIA appears poised for a rebound in the coming weeks.
Micron (NASDAQ:MU) had been on a steady recovery path but has recently traded in sympathy with NVIDIA and the broader semiconductor sector. However, the strong growth reported across the AI and data center markets should serve as a tailwind for Micron, given its critical role as a leading memory supplier. With earnings approaching on March 20, the stock could see a run-up as investors position for potential upside.
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