The Daily Breakdown looks at this week’s key event, including the GDP and PCE reports, Snowflake’s chart, and crypto’s selloff.
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Weekly Outlook
The S&P 500 (SPY ETF) and Nasdaq 100 (QQQ ETF) climbed for a third straight week, notching more record highs along the way. Small caps helped lead the charge, as the Russell 2000 finally hit new highs as well, with the IWM ETF gaining 2% last week — its seventh consecutive weekly gain.
The big question now is whether bulls can keep that momentum going, or if September’s seasonal weakness will finally start to matter.
On the economic front, two reports will take center stage: GDP and PCE.
Thursday’s GDP release will mark the final reading for Q2. Back in July, estimates stood at 2.5%, but they’ve since been revised up to 3.3% as the economy has proven more resilient than expected. Friday’s PCE report — the Fed’s preferred inflation gauge — will also be key. While the Fed appears set on delivering two more rate cuts this year, an in-line or cooler inflation reading would reassure investors that such a path remains viable.
Earnings-wise, Micron and AutoZone are set to report on Tuesday, Cintas follows on Wednesday, and both Accenture and Costco report Thursday.
Crypto Dip
In crypto, we’re seeing broad pressure to start the week, with Ethereum leading the dip. That’s weighing on Bitcoin, XRP, Solana, Dogecoin, Stellar, Bitcoin Cash, and others across the space as bulls look for a catalyst and keep a close eye on key technical support levels.
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The Setup — Snowflake
Snowflake went public in September 2020 to much fanfare and the stock enjoyed quite a bit of success in the prior bull market. However, it couldn’t dodge the ensuing bear market, eventually falling 75% from peak to trough. Now SNOW has been on a comeback, up almost 50% so far this year and up just over 100% over the past year.
I put some commentary on the chart above, but mostly to point out the stock’s strong one-day earnings rally of roughly 20% on August 28th — which sent shares to a three-year high.
SNOW is currently finding support in the $215 to $220 region and just cleared short-term downtrend resistance. From here, bulls are hoping that shares can continue to rally, potentially climbing to the recent highs near $250 (from August 28th). If Snowflake pulls back, investors are hoping support remains intact.
Options
As of September 19th, the options with the highest open interest for SNOW stock — meaning the contracts with the largest open positions in the options market — were the October $230 calls, followed by the $250 calls, then the $240 calls.
Bulls can utilize calls or call spreads to speculate on further upside, while bears can use puts or puts spread to speculate on more downside. For those looking to learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
The hot streak for ASML continues, with shares rallying for a third straight week and gaining 14.5%. The stock remains in focus this week too, with shares higher by more than 3% in pre-market trading. If the stock opens near current levels, ASML will hit fresh one-year highs. Check out the chart for ASML.
Shares of Snap are rallying in this morning’s pre-market session amid speculation of a potential buyout or partnership. It’s been a tough year for SNAP, with shares down more than 24% so far in 2025. Despite this, analysts have a consensus price target of $9.27, implying roughly 13.5% upside from Friday’s close.
ETH
Ethereum is slipping this morning, down more than 5% as bulls scramble to find support. As we discussed last week, let’s see if the $3,900 to $4,000 area can buoy ETH, as a pullback hits the crypto space.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.