The S&P 500 has been on a roller-coaster ride in recent weeks, with the markets trending lower ahead of Fed Chair Jerome Powell’s Jackson Hole meet. In the meeting, Powell mentioned the Fed may cut rates soon as a result of rising unemployment, which led to investors rejoicing and resulting in a 1.5% rally in the S&P 500 on Friday.
Still, markets remain gripped by policy shifts and geopolitical tensions. The current S&P 500 price-to-earnings ratio sits at 28, slightly below the 30+ levels seen before President Trump’s tariff push earlier this year. U.S. Treasury Secretary Scott Bessent said tariff revenues are running far higher than expected, projecting more than $300 billion in collections this year. He emphasized that funds would be used to reduce federal debt rather than distribute rebate checks, saying the priority is to lower the deficit-to-GDP ratio.
The trade picture also evolved. The United States and European Union struck a deal to cap tariffs on pharmaceuticals, lumber, and semiconductors at 15%, down from threats of 100%-250% rates. In exchange, the EU pledged to drop all tariffs on U.S. industrial goods and ramp up investment in American strategic sectors by $600 billion through 2028.
Geopolitical tensions remain high. The meeting between US President Trump and Russian President Putin in Alaska suggested that there may be some good news on the Russia-Ukraine War ending soon. However, recently, Russia dismissed Ukraine’s interest in a long-term peace deal. At the same time, President Trump lashed out in a Truth Social post, saying it was “impossible to win a war without attacking an invaders country.” He argued the conflict would have “never happened” under his presidency. Meanwhile, the US and China agreed to extend a 90-day tariff truce, staving off triple-digit duties on each other’s goods.
On the corporate front, the US government acquired a 10% stake in Intel at an investment of $8.9 billion. In other news, NVIDIA and AMD have agreed to pay 15% of China chip sale revenues to the US government in return for obtaining export licences for the Chinese market. Against this backdrop, the corporate world delivered a mixed bag of earnings and surprises.
Weekly Earnings Roundup: Surprises & Misses
Several major companies released their earnings in the last 2 weeks, including Circle Internet Group (NYSE: CRCL), CoreWeave Inc (NASDAQ: CRWV), Cava Group (NYSE: CAVA), Cisco Systems (NASDAQ: CSCO), Target (NYSE: TGT), Zoom (NASDAQ: ZM), Walmart (NYSE: WMT), and Deere & Co. (NYSE: DE). Below is a quick look at some of the most notable names.
Target: Comparable sales fell 1.9%, net sales declined 0.9%, and diluted EPS tumbled 20.2%. Shares dropped 4% after the retailer announced insider Michael Fiddelke as its next CEO, disappointing Wall Street, which had hoped for an outsider.
Walmart: Revenue rose 5% year-over-year, but EPS of $0.68 missed analyst estimates of $0.73. The stock fell 5% as investors fretted over cost pressures.
Zoom: Shares rallied 12% after strong results highlighted resilient customer growth. Revenue was up 5% YoY, while EPS grew by 66% YoY. The company also raised its growth outlook for the full fiscal 2026 period, with total revenues now targeted at $4.825 billion and $4.835 billion, compared with the previous outlook of $4.8 billion to $4.81 billion.
CoreWeave: Revenue surged 207% year-over-year, but the company remained unprofitable with a net loss of $291 million, wider than expected. Shares fell 21% on the day after the call as losses overshadowed growth.
Circle Internet: Revenue grew 53% YoY, but the company swung to a net loss of $482 million versus a $32.9 million profit last year. The shortfall was tied to $591 million in IPO-related non-cash charges.
Cava Group: Revenue increased 20.3% YoY, with same-restaurant sales up 2.1%. However, net income slipped 7% and guidance for full-year sales was cut, driving shares down 17% the day after the call.
Top Gainers
Dayforce (NYSE: DAY) soared 28% after Thoma Bravo entered advanced talks to acquire the HR software provider for $70 per share, valuing the company at $11.2 billion.
Paramount Global (NASDAQ: PARA) shares are up by more than 15% after CNBC stock commentator Jim Cramer called it a “meme stock.” The company recently finalized its merger with Skydance, which strengthened its financial outlook and expanded its content slate. The newly merged company last week said it acquired the programming rights to the fighting league UFC.
Top Losers
Palantir (NASDAQ: PLTR) fell 12% after a broader tech sell-off and short-seller Citron Research published a report, calling the stock “detached from fundamentals.” The short seller suggested shares should trade closer to $40 when benchmarked against OpenAI’s valuation multiples.
Tapestry (NYSE: TPR) share price has declined after the company lowered forecasts for its brands Coach and Kate Spade due to rising tariff costs.
Upcoming Earnings: Key Stocks to Monitor
This week, the spotlight will turn to several high-profile names, including MongoDB (NASDAQ: MDB), NVIDIA (NASDAQ: NVDA), Dell (NYSE: DELL), Pinduoduo (NASDAQ: PDD), Trip.com (NASDAQ: TCOM), Snowflake (NYSE: SNOW), CrowdStrike (NASDAQ: CRWD), and Alibaba (NYSE: BABA).
Super Micro Computer (NASDAQ: SMCI) and The Trade Desk (NASDAQ: TTD) are flashing oversold signals. Both have seen sharp pullbacks in recent weeks, but investors should watch closely to see if bargain hunters step in should market conditions stabilize.
Markets continue to swing between optimism and caution, with earnings, tariffs, and geopolitics all pulling investor sentiment in different directions. As Powell’s comments spark hopes of rate cuts and trade negotiations reshape global dynamics, the coming weeks could prove pivotal. For now, investors may find opportunities in oversold names while keeping a close eye on upcoming earnings that could set the next market trend.