Fed’s preferred inflation gauge to test stocks’ record highs: What to know this week

A blowout earnings report from AI darling Nvidia (NVDA) sent stocks to record highs last week. New inflation data will test that rally in the coming days.

The S&P 500 (^GSPC) and Dow Jones (^DJI) ended the week up about 1%, while the Nasdaq Composite (^IXIC) added about 0.6%. Both the S&P and Dow closed Friday at record highs.

The largest challenge to markets in the week ahead will likely come from the latest reading of the Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, on Thursday. A look at consumer confidence and updates on the manufacturing sector will also be in focus during the week.

Quarterly reports from Salesforce (CRM), Lowe’s (LOW), Macy’s (M), Okta (OKTA), and Best Buy (BBY) are also on deck.

 

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