Last week, concerns about the disruptive impact of artificial intelligence swept the U.S. stock market. The selling wave spread from the software sector to insurance, wealth management, transportation and other fields, with all three major indexes recording declines. This week, the market will continue to be wary of the continued impact of the AI impact, while focusing on Walmart’s fourth-quarter financial report and multiple sets of core economic data to observe consumer trends and the direction of Federal Reserve policy.
Art Hogan, chief market strategist at BRileyWealth, pointed out that the current market is like a whack-a-mole game, with investors speculating on the next industry to be impacted by AI, and emotions tend to be sensitive. Since the beginning of this year, the technology sector, which previously led the bull market, has fallen by more than 4%, and funds have turned to energy, consumer staples, materials and industrial sectors that had previously lagged behind. The above sectors have all increased by more than 10% during the year. Mark Hackett, chief market strategist at Nationwide, said that the replacement of market leading forces has become an established fact and is gradually affecting the decision-making logic of investors.
Several sets of core economic data will be released this week, including the preliminary fourth-quarter GDP of the United States, the University of Michigan's monthly consumer confidence survey and the Federal Reserve's preferred inflation indicator – the December personal consumption expenditures (PCE) price index. In addition, the minutes of the Federal Reserve's January meeting released on Wednesday will reveal the differences between officials who kept interest rates unchanged and those who advocated cutting interest rates. HSBC analysts mentioned that the minutes of the January meeting will detail the reasons for the two stances, which is in line with recent public statements by Federal Open Market Committee policymakers. Currently, the U.S. money market has fully priced in expectations of a 25 basis point interest rate cut in July, and the cumulative rate cut in 2026 is expected to be approximately 60 basis points. The U.S. Treasury Department will issue $16 billion in 20-year Treasury bonds on Wednesday and $9 billion in 30-year inflation-protected bonds on Thursday.
The focus of this week's earnings report is on Walmart's fourth-quarter earnings report released before the market opens on Thursday. As an important indicator of consumer spending, Wal-Mart's stock price has risen by 20% this year, with its market value exceeding US$1 trillion. This is also the first financial report conference for new CEO John Furner. Other financial reports worthy of attention include the results of DoorDash and Molson Coors on Wednesday, as well as the financial reports of companies such as Constellation Energy, Energy Transmission, and Southern Power that reflect the impact of AI power demand on the energy industry. U.S. markets were closed Monday for Presidents' Day.
The market is risky and investment needs to be cautious. This article is generated by AI based on third-party data and is for reference only and does not constitute personal investment advice.
