Top Three Catalysts That Could Move the S&P 500 and Dow This Week

The Dow Jones Index soared to a record high of 52,905 last week, up by 17.50% from its lowest point this year.

The S&P 500 ended the week at 7,483, a few points below the all-time high of 7,620.

This article explores some of the top catalysts that will move these indices this week.

Falling Crude Oil Prices and Impact on the Fed US stocks may receive a boost from falling crude oil prices, with top benchmarks like Brent and the West Texas Intermediate (WTI) falling by 40% from their highest levels this year.

The average gasoline price has moved from $4.5 earlier this year to $3.80.

The falling energy prices, coupled with the weak non-farm payrolls last week, have reduced the possibility of the Federal Reserve hiking interest rates.

Odds of hikes have fallen to 48% on Polymarket and Kalshi.

There are concerns that the oil market is moving towards a glut, especially now that OPEC approved another supply increase.

In line with this, the Federal Reserve will publish minutes of the last meeting on Wednesday.

These minutes will provide color on what officials discussed and hints of what to expect later this year.

Historically, these minutes tend to impact the Dow Jones and S&P 500 indices.

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PepsiCo stock has already slipped by 15% from its highest level last year, with investors being concerned about its North American food business.

Its earnings will be a good time for the company to shift the narrative.

Delta Air Lines will publish its earnings, providing more color on the impact of high jet fuel prices on its business.

The other companies that will publish their earnings this week are Cintas, Progressive, and Hyatt Hotels.

These companies will have a minimal impact on the indices.

Still, they will provide investors with a preview of what to expect when the earnings season starts next week.

AI Bubble Fears The Dow Jones and S&P 500 indices will also react to the potential AI bubble fears.

Last week, these indices reacted to the Bloomberg report on Meta Platforms ( NASDAQ: META ), which is considering leasing its extra computing power.

Stocks also reacted to the heightened volatility in the South Korean stock market, where the Kospi Index has been swinging by as much as 10% in a single trading session.

Any new major AI-related news event will have a major impact on the stock market.

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