The S&P 500 index edged up 0.5% last week amid stronger-than-expected quarterly reports from tech companies including Salesforce (CRM) and CrowdStrike (CRWD).
With just one session remaining in the month, the market benchmark is up 3% for August and has climbed 13% this year.
At the annual Jackson Hole Economic Policy Symposium, Federal Reserve Chairman Kevin Warsh reaffirmed his commitment to the Fed’s mandates, including the 2% inflation goal. Warsh said inflation numbers were concerning, citing the Fed’s preferred metric – the personal consumption expenditure price index – which was unchanged at 3.7% year over year in July.
Data released earlier last week showed U.S. economic growth, measured by gross domestic product, rose by 1.5% in Q2. This was unrevised from the advance estimate released last month and matched expectations in a survey compiled by Bloomberg.
The University of Michigan consumer sentiment index was revised upward on Friday to 51.7 for August from 51.0 in the preliminary estimate, compared with expectations for no revision in a survey compiled by Bloomberg. The latest reading was still below July’s final print of 55.2.
The technology sector had the largest percentage increase of the week, climbing 1.8%, followed by a 1.6% advance in communication services and a 1.1% rise in financials. Consumer discretionary eked out a 0.1% gain.
Salesforce was the best performer in both the technology sector and the overall S&P 500, jumping 22%. The company reported fiscal Q2 adjusted earnings and revenue above analysts’ mean estimates and boosted its fiscal 2027 guidance.
CrowdStrike had the second-largest percentage gain in technology and the overall S&P 500, climbing 14%. The company reported better-than-expected fiscal second-quarter results. CrowdStrike also raised its guidance for full-year net new annual recurring revenue, or ARR, amid increasing demand for cybersecurity solutions to address artificial intelligence risks.
The health care and energy sectors fell 2% each, followed by a 1.7% decline in industrials and a 1.3% slip in real estate. Consumer staples, materials and utilities also edged lower.
Earnings reports this week are expected from companies including Palo Alto Networks (PANW), Dell Technologies (DELL), Medtronic (MDT), Broadcom (AVGO) and Snowflake (SNOW). Investors will be heavily focused on the government’s August employment report, due Friday. Other reports will include July construction spending and factory orders.
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Episode 306 – Branding That Drives Growth With Michael Maloney, Brand Force 5