The Week Ahead (September 26)

First, a reminder of where we are…

As expected, the federal reserve raised rates by 75 basis points last week.

Fed chief, Jerome Powell, also implied a further tightening of 125 basis points this year, causing the markets to tumble as concerns about a recession grew. The S&P 500 fell by 4.07% over the past 5 trading days. 

Big Movers

Desktop Metals (DM) and Cleanspark (CLSK) shares were down 23.2% and 17.11% respectively over the past week.

High-growth stocks are especially susceptible to rising rates since they cause the present value of future earnings to be valued lower, thereby lowering the company’s overall valuation. 

Looking forward:

Economic Data

The Consumer sentiment index (CSI) will be released on Friday and is expected to remain unchanged at 59.5 (see here for how this index is calculated).

The index reveals how consumers plan to spend within the coming months.

Interestingly, data suggests stock markets have experienced a rally in the next 12 months after the index bottoms and currently the index is near its all-time lows. 

Earnings

Micron Technology (MU) is expected to report its earnings on the 29th of September (Thursday). MU is expected to have quarterly earnings of $1.42 per share in the upcoming report, a decline of over 40% year over year. MU has beat earning estimates in the past 4 quarters.

PIF will continue to take advantage of buying opportunities as they present themselves