Weekly market outlook – what traders should keep an eye on?

Markets opened the week on a positive note: S&P 500, Nasdaq 100, and Dow Jones futures all advanced after President Trump announced that negotiations with Iran were set to begin, along with comments suggesting a deal involving the Strait of Hormuz could be imminent. The news triggered a sharp pullback in oil prices, which could also ease inflationary pressure going forward.

Key points to watch this week:

⚠️ Geopolitical volatility: sentiment remains fragile and headline-driven. Oil markets could see sharp swings, with knock-on effects for FX and energy-related positions.

⚠️ Asian market turbulence: South Korea's KOSPI index tumbled nearly 5% in volatile trade, a reminder that regional risks persist even amid improving global sentiment.

📈 Tech sector rebound: technology stocks are recovering from a rough July, boosted by strong quarterly results from Microsoft and Amazon. Worth watching whether this bounce has legs or turns out to be a short-term correction.

📅 Earnings to watch this week:

Palantir (today)

AMD and SpaceX's first-ever public quarterly report (Tuesday)

Caterpillar, Merck, McDonald's (throughout the week)

📅 Nonfarm payrolls, Friday: a critical data point for Fed rate expectations. A strong print could reinforce hawkish rate expectations, with implications for the dollar and bond markets.

💡 Trader takeaway: this week is packed with potential volatility catalysts: geopolitics, earnings, and the jobs report. Stay disciplined on risk management, and factor in wider spreads and slippage around key events.

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