Last week, investors’ nerves were shattered by a variety of factors such as the US economic strength, resilience in the labor market, a nosedive in Apple stock. The benchmark indices went down as no surprise. The new week is going to be equally volatile. Despite the silence of Fed’s policymakers, the economic calendar contains some high-impact events.

Today the calendar is empty. Corporate news is ruling market sentiment. The news is mainly positive.

The major stock indices closed a quiet session on Friday with modest gains. The Dow Jones climbed by 75 points or 0.22%. The Nasdaq closed almost flat with a 0.09% uptick. The S&P 500 rose by 6 points or 0.14% to close at 4,457.
Futures on the stock indices traded with confident gains in the New York pre-market. The high-tech sector came to the forefront. The S&P 500 is expected to trade in the intraday corridor between 4,450 and 4,510.
Despite modest growth on Friday, the three main stock indices closed with weekly losses as investors voiced concern about Fed’s interest rates and a rally in oil prices.
For the week shortened by Labor Day, the S&P 500 slipped by 1.3%. The Nasdaq lost 1.9%. The S&P 500 shed 0.8%.
Apart from a rally in oil futures for three months in a row, economic data worsened worries about inflation. The services PMI came in stronger than expected. Besides, US weekly unemployment claims went down.
Mixed comments from Fed policymakers have increased uncertainty. New York Fed President John Williams kept his options open, while Dallas Fed President Lorie Logan stated that it might be "prudent" to put interest rates on hold at the next meeting, though further tightening may be required.
Apple shares rose by 0.3% on Friday, although the closing price at 178.18 dollars was about 2 dollars below the session's peak. Shares of the iPhone maker plummeted on news that Beijing banned central government officials from using iPhones at work. GameStop shares closed down 6% following reports that the US Securities and Exchange Commission is investigating GameStop's retail chain chairman, Ryan Cohen.
After a 2.9% loss over two sessions, the S&P 500 tech sector closed higher. However, the energy sector, which grew by 0.97%, showed the highest percentage growth among the 11 sectors.
By Monday, Wall Street futures climbed, driven by a recovery in tech giants. We are expecting a rather interesting week ahead. Fed officials have entered a quiet period. Until the policy meeting, the market will no longer hear alarming speeches, which means investors will be focused on macroeconomic and corporate data.
Two key indicators will be decisive for the Fed's rate decision: the PCE price index on Wednesday and retail sales on Thursday. It is expected that the overall US Consumer Price Index inflation accelerated to 3.6% from 3.2% last month, although the Fed may still feel relief as the stricter "core" inflation is forecasted to drop by 0.4 points to 4.3%. Now the market is trying to puzzle out the degree to which retail sales have slowed compared to the hot figures in July.
The crucial economic data will be available in midweek. At present, traders are digesting corporate news which is still related to AI, driving up the value of megacaps.
On Monday, Tesla was at the forefront. The company's shares jumped by 6.4% in the premarket, as Morgan Stanley upgraded the electric vehicle manufacturer's rating from "neutral" to "overweight" due to the potential growth in its market value from Dojo.
Tesla's supercomputer Dojo could lead to a market value jump for the automaker of nearly 600 billion dollars, Morgan Stanley analysts stated. Tesla, already the most valuable car manufacturer in the world, began producing a supercomputer in July for training AI models for autonomous vehicles and plans to spend over 1 billion dollars on Dojo in the next year.
Meta shares added 1.3% after a Sunday report stated that the company is working on a new AI system that should be as powerful as the most advanced model offered by OpenAI, the Wall Street Journal reported on Sunday.

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