Wall Street ended last week on a high note, with all three major indexes closing Friday in positive territory and setting fresh records.

The S&P 500 rose 0.4% to a new all-time high of 6,388.64, its 14th record close this year and fifth in a row. The Nasdaq Composite gained 0.24% to finish at 21,108.32, marking its 15th record of 2025. The Dow Jones Industrial Average climbed 208 points, or 0.47%, ending the session at 44,901.92, just shy of its own December record.

For the week, the Dow added 1.3%, the Nasdaq rose 1%, and the S&P 500 led with a 1.5% gain.

Earnings season boosts investor confidence

Markets had been buoyed by a strong corporate earnings season, with over 82% of S&P 500 companies beating expectations, according to FactSet.

Tech and telecom stocks were among the standout performers. Alphabet shares jumped 4% last week after reporting stronger-than-expected results, while Verizon climbed 5% on similarly upbeat numbers.

This week will be a critical stretch for earnings, with more than 150 S&P 500 companies set to report, including tech heavyweights Meta Platforms and Apple.

All eyes on the Fed

In addition to earnings, investors are bracing for a high-stakes week on the macro front. The US Federal Reserve is due to meet, with its latest interest rate decision expected Friday morning AEST. Policymakers are widely tipped to keep rates steady at 4.25% to 4.5%, but Fed Chair Jerome Powell’s remarks will be closely watched for clues about a possible September rate cut.
Key US data, including non-farm payrolls and the Fed’s preferred inflation gauge, are also due—setting the stage for potential volatility.

Australian market outlook and inflation watch

Despite Wall Street’s rally, local futures point to a softer open, with SPI 200 futures down 5 points and the ASX hovering just 1% below record highs.

Rio Tinto will kick off domestic earnings season, while attention turns to Wednesday’s consumer price index report. The Reserve Bank has flagged that future rate decisions will hinge on inflation data. Westpac expects quarterly headline CPI to rise 0.9%, with annual inflation easing to 2.3%. The RBA’s preferred trimmed mean is forecast to hit 2.7%.