Wall Street Week Ahead - Volatility Looms Amid Trade Policies, Jobs Data, and Earnings
Brace for a volatile week as trade policies, key jobs data, and earnings reports shape Wall Street outlook. Will the market rally or retreat?
Mar 02 2025
As we approach the opening of the trading week on Wall Street, investors are bracing for potential volatility influenced by recent trade policy developments, upcoming employment data releases, and a slew of corporate earnings reports.
As we approach the opening of the trading week on Wall Street, investors are bracing for potential volatility influenced by recent trade policy developments, upcoming employment data releases, and a slew of corporate earnings reports.
Market Recap and Sentiment
Last Thursday, Wall Street experienced a downturn, leading many to anticipate continued declines into Friday. However, the indices reversed course, closing with gains of 1.7%. This unexpected uptick may be attributed to investors' reactions to President Trump's assertive stance during his meeting with Ukrainian President Zelensky at the White House.
While the global community expressed concern over the confrontational nature of the encounter, investors seemed to interpret it as a sign of the administration's commitment to prioritizing American interests.
President Trump recent rapprochement with Russian President Putin suggests a strategic approach to the ongoing Russia-Ukraine conflict. The President appears to view this situation as both a personal opportunity to broker peace potentially earning a Nobel Peace Prize and a national economic opportunity.
Reports indicate that during Zelensky's visit, discussions centered on a proposal granting the U.S. rights to half of Ukraine's mineral resources, including titanium, lithium, uranium, and nickel. Such an agreement could potentially yield the U.S. up to $500 billion in future revenues.
While Zelensky has thus far declined the offer, the lack of U.S. support may pressure him to reconsider. Investors, observing the administration's efforts to transform rhetoric into tangible economic gains, are taking note.
Upcoming Employment Data
This week, several key events are poised to capture investors' attention.
On Friday, February's unemployment rate data is scheduled for release, with expectations holding steady at 4%, mirroring last month's figures. Additionally, the non-farm payroll employment change will be announced.
The U.S. economy added 143,000 jobs, slightly below the anticipated 175,000, but the unemployment rate decreased to 4%, down from 4.1% in December.
The core PCE Price Index, released last Friday, indicated a moderation in inflation, with annual rates of 2.5% (headline) and 2.6% (core).
Despite these figures, the Federal Reserve remains cautious before declaring victory over inflation. The Fed is expected to maintain current interest rates in its upcoming meeting, though futures markets are now pricing in a 70% probability of a rate cut by June, with two rate reductions anticipated in 2025.
Earnings Reports
The upcoming week also brings a continuation of earnings season, offering insights into corporate performance and projections for 2025.
Tuesday Before Market Open: On Holding, Nayax, Target Corp.
Tuesday After Market Close: CrowdStrike
Wednesday Before Market Open: Foot Locker, Stratasys, Riskified
Wednesday After Market Close: Marvell Technology, Rigetti Computing, MongoDB
Thursday Before Market Open: Hippo Holdings, JD.com
Thursday After Market Close: Broadcom, Costco, Serve Robotics
Analyst Expectations
Nayax: Q4 revenues expected at $91.89M, EPS $0.07; Full-year 2025 revenues projected at $410.56M, EPS $0.58.
CrowdStrike: Q4 revenues forecasted at $1.03B, EPS $0.86; Full-year 2025 projections: revenues $4.78B, EPS $4.43.
Stratasys: Expected Q4 revenues $150.25M, EPS $0.10; 2025 projections: revenues $585.86M, EPS $0.35.
Broadcom: Q4 revenue projections $14.59B, EPS $1.51; Full-year 2025 estimates: revenues $70.84B, EPS $7.60.
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Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.