WEEKEND ROUNDUP: Setup into Monday's Open

This week saw a robust performance across the U.S. equity markets, highlighted by notable gains in mega-cap tech stocks. The SPDR S&P 500 ETF Trust (SPY) closed at 773.26, marking a 2.06% increase for the week as it continues to test the upper bounds of its one-month range of 729.1–776.85. Tech-heavy NASDAQ 100 ETF (QQQ) surged by 3.28% to close at 723.03, buoyed by strong earnings reports, particularly from companies like Microchip Technology (NASDAQ: MCHP), which exceeded EPS estimates by $0.06, further enhancing investor confidence in the semiconductor space. In individual stock moves, Coherent's (NASDAQ: COHR) stock climbed 13% following strategic developments in the industry.

On the macro front, markets were calmed by the Volatility Index (VIX) descending to 14.9, a 6.05% decline over the week, reaching its lowest level in the past month. Investors are eyeing this move as an indication of decreasing market uncertainty, which might correlate with anticipated macroeconomic releases next week. Earnings reports were scarce this week, but broader themes emerged around megatrends and emerging market strategies as companies like MP Materials announced a surge in rare earth production.

Heading into next week, the market narrative centers on a cautiously optimistic risk-on sentiment, supported by the recent decline in the VIX and positive earnings surprises in the tech sector. However, market participants remain focused on upcoming macroeconomic data that could influence the trajectory of inflation expectations and monetary policy stances.

*There are no notable company earnings announcements scheduled for the upcoming week.*

- Monday: NY Fed Survey of Consumer Expectations — Watch for insights on consumer outlook related to inflation and spending. - Wednesday: CPI inflation print + Real Earnings — Essential for gauging inflation momentum and real wage growth, potentially impacting the Fed's policy stance. - Thursday: Initial Jobless Claims + PPI — Important signals for employment conditions and producer price pressures. - Friday: Consumer Sentiment + Industrial Production — Indicators of consumer confidence and economic activity, vital for assessing economic resilience.

- SPY: Support at 748.8 and resistance at 776.85; a break above could signal further bullish momentum. - QQQ: Support at 685.82 and resistance at 728.54; a sustained move beyond these levels may confirm a strong tech rally. - IWM: Support at 292.4 and resistance at 303.06; maintaining strength above resistance could signify broader market participation.

As markets await the reopening of futures on Sunday, the stage is set for a potential continuation of the risk-on sentiment, contingent on next week's pivotal macroeconomic data and the VIX maintaining its subdued levels.