This week, U.S. retail sales data and third-quarter earnings reports from several major financial and consumer companies will be the focus of the market. Meanwhile, a series of important economic reports, including building permits, industrial production, and import and export price data, will shed further light on the latest state of the U.S. economy.

• September Retail Sales Data

In August 2024, U.S. retail sales rose 0.1% from a year earlier, exceeding market expectations for a decline and demonstrating the resilience of consumer spending. Markets are forecasting a 0.3% YoY increase in retail sales for September, further reflecting continued solid consumer demand.

• Financial and consumer giants' earnings releases

This week, major financial institutions such as Citigroup, Bank of America, and Goldman Sachs Group will release their earnings reports. The market expects Bank of America's third-quarter earnings to be pressured by lower net interest income, while Goldman Sachs is expected to benefit from profit growth from merger and acquisition advisory fees and stock offerings. In the consumer sector, earnings reports from Netflix and Procter & Gamble will provide additional insights into consumer behavior and spending trends.

• Speech by Federal Reserve officials

A number of Fed officials, including Kashkari (Kashkari), Waller (Waller), Daly (Daly) and Bostic (Bostic) will speak this week, their comments will provide the market with important signals of the Fed's policy outlook. The market currently expects the Fed to cut rates by a modest 25 basis points in November, with little possibility of a more significant rate cut.

• Other key economic data

U.S. building permits rose 4.6% in August from a year earlier to a seasonally adjusted annualized level of 1.47 million. September's building permits data will provide a clearer guide to the momentum in the housing market. In addition, September's industrial production as well as import and export price reports will also help assess the health of the manufacturing sector and trade dynamics.

Last week, financial institutions such as JPMorgan Chase and Wells Fargo drove the market's strong performance, with all major stock indexes posting weekly gains: the S&P 500 rose 1.5%, the Dow Jones Industrial Average gained 1.4%, and the Nasdaq 100 rose 1.7%. However, investor caution remained due to market uncertainty over the upcoming United States presidential election, the pace of interest rate cuts by the Federal Reserve and heightened geopolitical risks in the Middle East.