Dow Jones, Nasdaq 100 Await Key Events

The Dow Jones and Nasdaq 100 indices have lost momentum in recent days as stock market volatility has picked up.

The tech-heavy Nasdaq 100 Index slipped to 29,118 on Friday from its record high of 30,750, while the Dow Jones Industrial Average retreated from 52,650 to 51,880.

Investors are now turning their attention to four key events that are likely to shape the direction of U.S. stocks this week.

US Nonfarm Payrolls Data The Dow Jones and Nasdaq 100 Indices will react to the upcoming US nonfarm payrolls data, which will shed color on the state of the economy.

Economists expect the upcoming report to show that the economy added 114k jobs this month after adding 172k in May.

The unemployment rate is expected to remain unchanged at 4.3%.

These numbers come as the Federal Reserve considers the next action on monetary policy.

In his recent statement, Raphael Bostic hinted that the bank may hike rates later this year to counter the elevated inflation.

This view matched what officials said in the last meeting.

A strong NFP data will reinforce the view that the Fed will hike interest rates in later this year.

However, with crude oil prices falling, there is a likelihood that the bank will be hesitant to hike rates, which explains why US bond yields have retreated.

Read Also: I Just Realized My Job's Life Insurance Won't Protect My Family.

What Would Dave Ramsey Say? SpaceX to Enter the Nasdaq 100 Index Another key catalyst for the Nasdaq 100 Index is that Elon Musk’s SpaceX (NASDAQ: SPCX ) will become the next entrant.

This is a major move for the index as the company has a valuation of about $2 trillion.

In a recent note, analysts at JPMorgan (NYSE: JPM ) estimated that the inclusion could lead to over $4.3 billion buying spree by index providers.

The challenge, however, is that SpaceX has lost momentum, with the shares falling by over 32% from its all-time high.

Also, history shows that the initial surge for companies that enter indices don’t last.

For example, companies like Rocket Lab and Astera Labs retreated recently after they entered the Nasdaq 100 Index.

US-Iran Ceasefire is On the Edge US stocks will also be on the edge as investors focus on the US and Iran tensions, which have put the ceasefire at risk.

The two sides exchanged fire during the weekend, with Iran striking bases in Bahrain and Kuwait.

The US also hit key Iranian targets after the country launched attacks on ships crossing the Strait.

An escalation would be risky for the stock market as it will push crude oil prices higher.

On the positive side, there are signs that President Trump is hesitant to escalate the war ahead of the midterm elections.

He is also afraid of the falling oil inventories.

Nike Earnings Unlike last week, when Micron (NASDAQ: MU ) published market-moving earnings, there will be no significant releases this week.

Nike, the embattled sportswear company, will be the one to watch this week.

These numbers come as analysts remain pessimistic about its turnaround strategy.

As such, traders will focus on whether the management’s efforts are starting to bear fruit.

In addition to Nike, other companies like Constellation Brands, General Mills, and FactSet will also publish their financial results.

Read Also: Nike Stock Gets A Rude Awakening As Technicals Point To More Weakness Ahead Of Earnings Image: Shutterstock