Global markets head into the new week with heightened anticipation as Federal Reserve Chair Jerome Powell prepares for his closely watched speech at Jackson Hole. His remarks could signal the next phase of U.S. monetary policy, particularly around the timing and scale of interest rate cuts, which investors are betting heavily on.
Meanwhile, leading growth names such as Tesla, Micron Technology, and AppLovin are moving toward potential breakout points, providing traders with new entry signals amid a resilient stock market rally.
The Policy Spotlight: Powell at Jackson Hole
Historically, Powell’s Jackson Hole addresses have been a stage for pivotal policy announcements. This year, investors are watching to see whether he confirms expectations of a September rate cut. Current market odds suggest an 85% chance of a cut, though hotter-than-expected inflation data last week has injected some uncertainty.
Traders are also pricing in the possibility of additional cuts before year-end, which could shape equity momentum heading into the final quarter of 2025.
Market Performance Last Week
Despite inflation concerns, U.S. equities maintained strong momentum:
- Dow Jones Industrial Average gained 1.7%, surpassing its late-November record.
- S&P 500 rose 0.9%, reaching fresh highs.
- Nasdaq Composite added 0.8%, though it softened in the later part of the week.
- Russell 2000 jumped 3.1%, hitting its best level in six months.
Sector rotation played a key role, with small caps, financials, homebuilders, airlines, and biotech stocks stepping up while some AI-linked names faced pressure following mixed earnings across the semiconductor and infrastructure space.
Treasury yields edged higher, with the 10-year closing at 4.325%, while crude oil prices slipped 1.7% to $62.80 per barrel.
ETFs Snapshot
- ARK Innovation ETF (ARKK) climbed 3%, while ARK Genomics (ARKG) surged 8%, reflecting strong investor appetite for growth and biotech plays.
- Semiconductor ETF (SMH) rose 0.7%, supported by Micron, though broader AI hardware stocks showed volatility.
- SPDR S&P Homebuilders ETF (XHB) jumped nearly 5%, underscoring housing sector strength.
- U.S. Global Jets ETF (JETS) soared 8.4%, leading all major thematic ETFs.
Key Stocks to Watch
Tesla (TSLA)
Tesla continues to test investor conviction. The stock briefly crossed short-term resistance early in the week before retreating, closing at 330.56. A broader breakout above 367.71 remains the technical target. However, with earnings expected to decline for a third consecutive year, buyers are relying more on chart signals than fundamentals.
Micron Technology (MU)
Micron posted a strong start to the week after raising guidance on AI-driven memory demand. Shares are working toward a 129.85 cup-base buy point, though AI sector volatility weighed on momentum later in the week. A potential handle formation could set up a lower entry level.
AppLovin (APP)
AppLovin faced a 3.8% decline last week, though it rebounded slightly after testing support around 429. The stock remains in consolidation following its August earnings breakout. A move above 473.70 could provide a renewed entry signal for investors seeking exposure to the digital advertising and app monetization space.
Looking Ahead
This week’s spotlight belongs to Powell’s Friday remarks, which could reset market expectations on interest rates and drive equity sentiment across sectors. At the same time, retail earnings from Walmart and Home Depot will provide further insight into consumer spending resilience amid shifting macroeconomic conditions.
For investors, the balance between monetary policy signals and sector-specific opportunities will define near-term positioning. Growth names like Tesla, Micron, and AppLovin remain pivotal indicators of whether this market rally can sustain fresh highs into the fall.
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