Inflation and retail sales data greet a roaring stock market rally: What to know this week

Published On Nov 10, 2024, 7:45 AM

The stock market is experiencing a strong rally, with major indexes reaching record highs in light of a recent presidential election win by Donald Trump. The S&P 500 and Dow Jones saw gains of more than 4.5%, while the Nasdaq climbed nearly 6%. In the coming week, important economic data on inflation and retail sales are scheduled for release, which will be critical for the Federal Reserve's interest rate decision-making. Major companies like Home Depot, Cisco, and Disney will also report their quarterly earnings. Disney's streaming division has shown promise despite challenges in linear TV and theme parks, while broader market trends indicate a potential for further gains driven by reduced government regulation expectations under a Trump presidency. Small-cap stocks are being eyed for future investment, but current earnings estimates indicate caution is necessary.

Stock Forecasts

Given the positive momentum in the stock market following Trump's election win, and anticipation surrounding economic data releases, investors may see continued growth in large-cap sectors, particularly technology and consumer discretionary stocks like Disney and Home Depot.

Investors may consider the Roundhill Magnificent Seven ETF (MAGS), which includes major tech companies that have shown strong performance recently. As Big Tech continues to benefit from favorable market conditions, MAGS could see further upward momentum as investor confidence grows.

The outlook for small-cap stocks remains cautious. Earnings estimates are declining despite their recent rally, and without clear signs of improved fundamentals, it's advisable to approach small-cap investments with caution.

Related News

(Bloomberg) -- A whopping $20 billion flowed into US equity funds on Wednesday, the day Donald Trump claimed a decisive victory in the presidential election, according to Bank of America Corp. strategists.Most Read from BloombergKey Ballot Initiatives and Local Races Highlight Views on Abortion, ImmigrationParis Restricts Through Traffic in City CenterFrom Housing to Immigration, Key Ballot Initiatives and Local Races to FollowThat was the biggest daily addition in five months, strategist Michae

SPY
IWM

(Bloomberg) -- After an initial stampede into “Trump Trades,” investors in some asset classes are tapering their enthusiasm as they question whether Donald Trump will push through his ambitious tariff proposals as US president.Most Read from BloombergKey Ballot Initiatives and Local Races Highlight Views on Abortion, ImmigrationParis Restricts Through Traffic in City CenterFrom Housing to Immigration, Key Ballot Initiatives and Local Races to FollowThe dollar reversed much of its post-election s

IWM
XLC

Investors are digesting a fresh interest rate cut from the Federal Reserve as the impact of Trump's expected policies also remains in focus.

NVDA
MAGS
WBD
DHI
NFLX