Market Update Into September 7th: Inflation Data Incoming

3 mins read

Markets whipsawed last week as a wave of strong AI earnings hit the tape, crypto caught a bid, and Friday’s jobs report came in far hotter than expected, with 162,000 jobs added against estimates of just 53,000. AI and memory names led the charge as $AVGO, $DELL, and $HPE all crushed earnings, with $SNDK and $MU also ripping higher on Friday, while $LULU missed badly and tanked nearly 20%. Crypto also grabbed attention as Bitcoin broke above $80,000 midweek, but gave back those gains after Friday’s report pushed up rate hike odds. In other news:

Looking ahead, the earnings calendar features oversold names like $ORCL and $ADBE. Traders will also be watching key inflation data, with PPI on Thursday and CPI on Friday. With the major indexes still sitting in close proximity to all-time highs, let’s see how the charts are setting up.

Weekly Analysis

$SPY ended the week flat at $770.19 (+0.11%), holding above its prior breakout level and the 9/21 EMA Cloud. Since breaking out to new all-time highs the week of August 3rd, the ETF has carved out a bull flag right at that breakout zone. Until it breaks and holds below these levels, the bullish trend remains intact.

$QQQ slightly outperformed last week but still closed flat, at $718.96 (+0.35%). While it remains above its weekly 9/21 EMA Cloud support, the Momentum Filter just printed its second neutral gray bar, signaling bullish momentum is fading. The downtrend line and prior all-time high remain the next key levels of resistance for the Nasdaq-100.

With rate hike odds increasing last week, the rate-sensitive $IWM ended the week just a smidge higher at $296.01 (+0.09%). It bounced cleanly off its 9/21 EMA Cloud with a long lower wick, but also put in its first red Momentum Filter bar since late July. With $IWM sitting right at this key level of support, this week’s inflation data could decide whether small-caps hold the trend or break down.

Notable Results

Notable Results

SNOW (Snowflake)

EPS: $0.62 vs $0.26 est
REV: $1.547B vs $1.479B est

GTLB (GitLab)

EPS: $0.24 vs $0.13 est
REV: $286.254M vs $273.349M est

IOT (Samsara)

EPS: $0.20 vs $0.13 est
REV: $508.437M vs $483.298M est

MDB (MongoDB)

EPS: $1.90 vs $1.30 est
REV: $771.773M vs $734.243M est

FIVE (Five Below)

EPS: $1.68 vs $1.16 est
REV: $1.261B vs $1.150B est

DELL (Dell Technologies)

EPS: $7.04 vs $4.88 est
REV: $46.971B vs $44.675B est

ZS (Zscaler)

EPS: $1.19 vs $0.88 est
REV: $898.185M vs $877.506M est

NTAP (NetApp)

EPS: $2.58 vs $2.04 est
REV: $2.025B vs $1.837B est

CIEN (Ciena)

EPS: $2.11 vs $1.67 est
REV: $1.671B vs $1.639B est

HPE (Hewlett Packard Enterprise)

EPS: $1.11 vs $0.91 est
REV: $12.213B vs $11.977B est

DOCU (DocuSign)

EPS: $1.16 vs $0.96 est
REV: $875.746M vs $867.332M est

GWRE (Guidewire Software)

EPS: $0.99 vs $0.85 est
REV: $411.100M vs $402.696M est

LULU (Lululemon Athletica)

EPS: $2.92 vs $2.51 est
REV: $2.416B vs $2.575B est

PANW (Palo Alto Networks)

EPS: $1.02 vs $0.88 est
REV: $3.410B vs $3.351B est

PATH (UiPath)

EPS: $0.15 vs $0.13 est
REV: $410.256M vs $397.795M est

CRDO (Credo Technology Group)

EPS: $1.20 vs $1.12 est
REV: $479.003M vs $471.515M est

AVGO (Broadcom)

EPS: $3.32 vs $3.16 est
REV: $29.591B vs $29.442B est

MDT (Medtronic)

EPS: $1.45 vs $1.39 est
REV: $9.756B vs $9.530B est

TTC (Toro Company)

EPS: $1.33 vs $1.31 est
REV: $1.223B vs $1.191B est

What’s Happening Now

SNOW Snowflake
In a blowout earnings report, SNOW delivered a +138% EPS surprise and +35% YoY revenue growth. Fueled by rapid adoption for its AI data and coding tools, Snowflake reported a 126% net revenue retention rate while raising full year guidance. As enterprises ramp up long-term contracts, momentum is further supported by nearly $9B in remaining performance obligations.

AVGO Broadcom
The semiconductor giant posted record revenue of nearly $30B, yet sold off after Q4 2026 guidance came in slightly below sky-high expectations of $35B. EPS rose 96% YoY fueled by explosive AI chip demand from Google and Anthropic, however, management warned that Q4 gross margins will compress to 73% (from 78% last year) as the cost of memory hardware surges.

TSLA Tesla
Amid generally-weak September seasonality, next week shows a bright spot for tech leaders Tesla, Nvidia, and AMD. Tesla leads the pack with a 4.5% average gain and nearly 75% win-rate over the past 15Y, although it dipped on Friday after its Cybercab event seemed to underwhelm. While traditional vehicles drive $20 billion in revenue last quarter, Tesla management views them as mere “delivery mechanisms” for its capital-intensive, high-stakes AI and robotic bets.

Believe it or not, this is just a fraction of what happened in the markets last week. For a full rundown delivered straight to your inbox every weekend, sign up for The Official Trendspider Newsletter!