The Week That Was

Markets continued to build on recent gains last week as a combination of resilient economic data and dovish central bank commentary supported risk appetite. In the US, the S&P 500 moved modestly higher, with Real Estate (+2.4%) among the standout sectors, helped by expectations that rate cuts may be drawing closer in the US. In contrast, the Nasdaq ended lower as Technology names lost ground, with investors reassessing near-term enthusiasm around AI following commentary from OpenAI’s Sam Altman.

In Europe, equities were stronger (+1.4%), buoyed by confirmation of a tariff agreement with the US that capped rates on pharmaceutical exports to 15%. Whilst consumer sentiment across the bloc remains soft, accelerating wage growth in Q2 should provide some support to household demand. PMI surveys meanwhile confirmed a welcome pickup in industrial activity on both sides of the Atlantic.

The euro held close to year-to-date highs (1.17) against the dollar as the Fed Chair’s update at Jackson Hole implied their was greater potential for monetary easing in the US relative to Europe in the months ahead. Commodities also moved higher, with oil and gold supported by persistent geopolitical tensions and fading hopes of a near-term resolution in Ukraine.

The Week Ahead

Equity markets have started the week on the front foot with Asian markets climbing by the most in two weeks, with technology stocks particularly strong. The Bank of Japan’s Governor Kazuo Ueda noted overnight that a tight labour market should be a tailwind for wage growth. This increases the prospects of further rate hikes before year end, which in turn should keep upward pressure on the Yen and domestic bond yields.

Earnings from Nvidia are likely to dominate headlines this week, not only as a bellwether for AI demand but also for what its guidance signals about broader tech sector momentum. Dell Technologies, Irish Continental Group, and Pernod Ricard also report, with the latter particularly in focus following the EU’s failure to secure tariff exemptions for wine and spirits.

Geopolitics will remain a powerful influence. US–India trade negotiations will potentially intensify as new tariffs come into effect, while Canada’s move to drop many reciprocal tariffs could lay the groundwork for a closer bilateral deal with the US.

On the macro front, US consumer confidence data, ECB policy minutes and Irish retail sales will all garner attention. The key focus for markets however will be on Friday’s release of core PCE inflation, the Fed’s preferred gauge (forecast to climb to 2.9% for July). A steady reading is unlikely to derail expectations for a September rate cut, particularly as policymakers increasingly frame tariffs as a one-time shock and are more focused on employment trends.

Key market-moving events this week

• Nvidia earnings – insights into AI demand, margins, and China sales outlook
• ECB policy minutes – direction of travel for Eurozone monetary policy
• US core PCE inflation – a key input into the Fed interest rate decisions

#Nvidia #Markets #Equities #Inflation

This represents an extract from the Weekly markets report from Cantor Fitzgerald Ireland. If you would like more detail on individual securities or how we can help with your investment needs, please reach out.

Written by John Mullane, CIO, Cantor Fitzgerald Ireland