Dow Jones, Nasdaq, S&P 500 weekly preview: It's the Nvidia earnings week

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Dow Jones, Nasdaq, S&P 500 weekly preview: It's the Nvidia earnings week

closed above the key 40,000 level for the first time in history on Friday, rising 134.21 points, or 0.34%, to 40,003.59, after hitting an intraday high in the previous session.The week ended strong with the Dow up 1.2%, marking its fifth straight weekly gain. The S&P 500 and Nasdaq climbed 1.5% and 2.1% week-to-date, achieving their longest winning streak since February.

Moreover, the minutes from the May Federal Open Market Committee meeting will be released on Wednesday. Meanwhile, several Fed officials are set to speak throughout the week as well. As earnings season winds down, 17 firms are slated to report results this week, followed by another nine the following week.: “We remain positive on equities and continue to see fixed income securities as complimentary to stocks in providing portfolio diversification.”

“Near term volatility could in our view continue to present opportunity for investors to “catch babies that get thrown out with the bath water” in periods of market down drafts as the market digests levels of uncertainty that are not uncommon to times of transition in monetary policy like these and in periods of rising geopolitical risk.”: “The SPX is coming off four straight up weeks to fresh all-time highs.

“Normalization in the market multiple is also a function of a higher risk premium , which reflects uncertainty around a wider range of potential outcomes. On this front, our bull and bear cases represent ~20% upside and downside potential versus the current index level, respectively.”low at 11.99 while SPX trades at a very lofty 23.5x LTM P/E, all eyes turn to NVDA.

 

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