What to Watch in Markets This Week: Tech Earnings, Fed Comments, and Gold Surge

Key economic indicators and company results could set the tone for global markets and investor sentiment this week.

This week is shaping up to be pivotal for investors, with a blend of central bank signals, corporate earnings from major tech players, and inflation data likely to influence global equity markets. Here are the top five things to keep an eye on in financial markets:

1. Tech Giants Report Earnings – AI Hype Under Scrutiny

A fresh batch of earnings from leading U.S. tech companies will test the momentum behind the AI-driven stock rally.

• Micron Technology will report Tuesday after market close, following strong performance from peers such as Broadcom and Oracle.
• Jabil, an Apple supplier, is also reporting Thursday and has made major bets on AI-related infrastructure.
• Accenture will unveil results the same day, although concerns remain about how AI may disrupt its business model.

These reports could help investors gauge whether the AI boom remains a solid growth driver or if enthusiasm is beginning to cool.

2. Federal Reserve Speeches May Guide Rate Cut Expectations

After the Federal Reserve cut interest rates by 25 basis points last week, all eyes are on Fed Chair Jerome Powell and his fellow policymakers.

• Powell speaks Tuesday, with markets hoping for clues on future rate moves.
• The Fed remains split: some members foresee no more cuts this year, while others support further reductions.
• Sticky inflation and a weakening jobs market continue to complicate policy decisions.

Expect any hawkish or dovish shifts in tone to impact bond yields and broader investor sentiment.

3. Inflation Data in Focus – Core PCE Reading Due Friday

The Federal Reserve’s preferred inflation gauge — the core Personal Consumption Expenditures (PCE) index — will be released on Friday.

• Analysts expect a 0.2% month-on-month rise for August, slightly lower than the previous 0.3%.
• A softer reading could increase the likelihood of additional rate cuts.
• BNP Paribas noted that inflation is “unlikely to land” at the Fed’s 2% target in the near future.

This data could directly influence asset allocations, especially in interest rate-sensitive sectors like tech and real estate.

4. Costco Earnings to Reveal Tariff Impact

Costco will publish quarterly results Thursday, with investors watching for how tariffs are affecting pricing and consumer demand.

• The company previously stated tariff-driven price hikes would be a "last resort."
• Retail peers like Walmart and Target have already passed on some costs to consumers.
• Analysts fear continued tariff pressure could dent consumer sentiment and spending.

For investors, the results may offer clues on how trade tensions are affecting U.S. retail margins and inflation.

5. Gold Hits Record High as Rate Cuts Fuel Demand

Gold prices surged to an all-time high this week amid expectations of further U.S. interest rate cuts.

• Spot gold climbed 0.9% to $3,715.50/oz, while futures jumped to $3,750.20/oz.
• As interest rates fall, the opportunity cost of holding non-yielding assets like gold drops — boosting investor appeal.
• Broader metals markets also showed strength following the Fed’s move.

For traders, gold’s performance underscores its appeal as a hedge against economic uncertainty and inflation volatility.

Conclusion: What This Means for Investors

This week’s mix of tech earnings, inflation data, and Fed commentary is likely to set the market tone heading into Q4. AI-exposed stocks, retail, and commodities could all face volatility depending on how these themes evolve.

Investors should remain nimble, paying close attention to central bank language and inflation trends, as these will dictate capital flows, risk appetite, and the trajectory of the global stock rally.

Sources: (Investing.com, Reuters.com)