The S&P 500 Index and Dow Jones Industrial Coverage (DJI) nabbed record closes after gross domestic product (GDP) data for the second quarter beat expectations. And while NVDA ultimately fell after earnings, results highlighted impressive AI growth. The rally didn't last, though, despite a personal consumption expenditures (PCE) price index for July that was in line with estimates. Stocks succumbed to profit-taking on Friday, with all three major indexes pacing for weekly losses -- the first in three weeks for the SPX and DJI -- but remained on track for monthly wins.
Investors also unpacked a drop in durable goods orders for July and President Donald Trump's controversial dismissal of Federal Reserve Governor Lisa Cook, which raised concerns over the central bank's independence, though those were quickly set aside.
Besides NVDA Earnings
While NVDA earnings stole the spotlight, other tech firms attracted attention this week. The U.S. government announced a stake in sector peer Intel (INTC). Optimism grew ahead of Okta's (OKTA) report, and cybersecurity concern CrowdStrike (CRWD) geared up to share results. Chipmaker Advanced Micro Devices (AMD) scored a fresh upgrade to "buy" over AI prospects, while Dell Technologies' (DELL) downbeat forecast cast a shadow on its top- and bottom-line win.c
Tariffs Haunt Retailers
Tariff concerns brought the retail sector to the forefront as well, with American Eagle Outfitters (AEO) stock struggling after a downgrade. Abercrombie & Fitch (ANF) and Kohl's (KSS) both rallied after their respective quarterly reports, while Dollar General (DG) and Five Below (FIVE) shares staged opposite post-earnings moves. Best Buy (BBY) brushed off better-than-expected Q2 results, while Gap (GAP) surpassed profit estimates but missed on revenue. Meanwhile, diamond retailer Signet Jewelers (SIG) shares popped after Kansas City Chief tight end Travis Kelce and pop star Taylor Swift got engaged with a ring estimated to be worth $675,000 to $1 million.
Holiday-Shortened Week Packed With Jobs Data
Markets will be closed on Monday to observe Labor Day, but traders return from the holiday weekend to plenty of jobs, manufacturing, and services data. Earnings reports from American Eagle (AEO), Asana (ASAN), C3.ai (AI), Campbell Soup (CPB), Dollar Tree (DLTR), Hewlett Packard Enterprise (HPE) Lululemon Athletica (LULU), Macy's (M), Nio (NIO), Signet Jewelers (SIG), and Zscaler (ZS) will also keep Wall Street busy. Uncover the best and worst stocks to own next week, and keep this SPX trendline on your radar.
