S&P 500 Edges Higher as Dell Falls 5.7%, Weekly and Monthly Losses Loom

Adding to the tech sector’s woes, NetApp plunged 11.3% after cutting its annual outlook, while Walgreens dropped 4.8% on news that Sycamore Partners might acquire the pharmacy chain.

Market Outlook: What Should Traders Watch Next Week?

Looking ahead to Monday and beyond, traders should brace for continued volatility as the market digests mixed economic signals. The S&P 500 is on track for its biggest monthly decline since April 2024, and the Nasdaq is nearing its worst month since September 2023, suggesting potential for more downside pressure.

Key catalysts next week include Federal Reserve commentary, particularly from Fed Chair Jerome Powell, and fresh economic data, including the ISM Manufacturing Index and the monthly jobs report. Any signs of labor market softness could bolster expectations for a rate cut, potentially lifting risk assets.

Additionally, geopolitical developments, including potential new tariffs on Chinese goods, could impact sentiment, particularly in sectors exposed to international trade. With defensive sectors outperforming, traders might look to rotate into consumer staples and utilities for stability, while remaining cautious on high-valuation tech stocks facing margin pressures.

Overall, a cautious, data-driven approach will be critical as the market seeks direction in the face of rising recession risks and ongoing inflationary pressures.

More Information in our Economic Calendar.