On Monday morning, Wall Street appeared poised for a modest uptick, attempting to recover from a turbulent start to September. The S&P 500 faced a downturn on Friday; however, it managed to log gains for the week. Investors are looking ahead to crucial consumer and wholesale inflation data scheduled for release this week, which could influence market trends moving forward.
Speculation is rife over the upcoming Federal Reserve meeting, where many analysts forecast a 25-basis-point cut in interest rates. Still, there remains uncertainty about whether this will be a one-time adjustment or if there may be two more cuts by the end of the year. This debate continues to shape market sentiment.
In the tech sector, discussions are heating up around Broadcom, which some analysts suggest may have overtaken Nvidia as a leading semiconductor company in the artificial intelligence space. This bold assertion highlights the ongoing narrative that both companies play pivotal roles in building effective data centers. Reflecting this dynamic, Citi has lowered Nvidia’s price target from $210 to $200, while maintaining a buy rating. The change comes in light of Broadcom’s optimistic outlook regarding growth.
Meanwhile, JPMorgan has increased its price target for Oracle, raising it to $200 from $185. Analysts at JPMorgan expect Oracle’s artificial intelligence infrastructure bookings to rise. Despite this positive outlook, they warn that Oracle shares are currently trading at a premium. Investors will be keenly awaiting Oracle’s earnings report, scheduled to be released after tomorrow’s market close. Notably, Oracle ranks fourth in cloud computing, trailing behind giants like Amazon, Microsoft, and Alphabet’s Google.
In consumer technology, Apple is set to unveil what is anticipated to be the slimmest version of its iPhone to date during its fall product event. Analysts predict the company could boost its profit margins through higher prices. Furthermore, it has been reported that Apple plans to introduce AI features for its iPhone models in China by year-end, signaling significant moves in a competitive market.
In the realm of creative software, Mizuho has downgraded Adobe’s price target from $530 to $460 but continues to hold an outperform buy rating. Their analysis indicates positivity among Adobe’s enterprise customers despite overall market challenges. With Salesforce’s quarterly results already known, Adobe’s upcoming earnings will be closely scrutinized as a measure of success in the current era of DIY AI solutions.
Investors are also looking favorably at Kenvue, the offshoot of Johnson & Johnson’s consumer business, which saw its shares drop more than 9% last week following reports concerning health allegations linked to Tylenol. Bank of America considers this dip an enticing buying opportunity, despite the stock’s current stability.
Lastly, Jefferies has included Nike on its “Franchise Picks” list, asserting that Wall Street may be underestimating the company’s strides toward a successful turnaround. Although the optimism is tempered by concerns over inventory levels, analysts forecast that Nike could see a positive shift by the first half of 2026 as new products begin to emerge.
In summary, the market faces an eventful week ahead with key data releases, corporate earnings reports, and significant technological developments shaping investor sentiment across multiple sectors.
