The Vanguard S&P 500 ETF (VOO) continued its strong bullish trend last week, reaching its all-time high. VOO stock ended the week at $585, up 33% from its lowest point in April, indicating that it has entered a bull market. Here are some of the top catalysts for the VOO fund this week.
VOO ETF to react to key earnings
The VOO ETF stock continued rising last week as the earnings season gained steam. About 34% of the S&P 500 Index companies have published their earnings.
80% of these companies have published a positive EPS surprise. The blended earnings growth so far stands at 6.4%. If the final figure will be 6.4%, it will be the lowest earnings growth since the first quarter of last year.
The earnings season will accelerate this week, with most of the VOO constituent companies publishing their earnings. The most notable of them are Magnificent 7 companies like Microsoft, Meta Platforms, Apple, and Amazon.
Other notable companies to watch include firms such as Boeing, Booking Holdings, Procter & Gamble, Visa, Starbucks, Mastercard, and ExxonMobil.
A few of these companies will stand out. Starbucks stock will be in focus as on the turnaround efforts by the former Chipotle CEO. The company has faced major challenges as competition from firms like Luckin Coffee has surged. Its stock has dropped by almost 20% from the highest point this year.
Boeing will also be in the spotlight as investors watch its turnaround efforts after a series of challenges. Data shows that the Boeing stock price has jumped by 81% from its lowest level this year, and is hovering at its highest point since January this year.
PayPal stock price will also be in the spotlight as its earnings show how its business is being impacted by the ongoing stablecoin growth. Although the company has launched its stablecoin, there are indications that its market share is not increasing.
The other notable companies to watch are Union Pacific and Norfolk Southern, which will publish their results and possibly announce a $200 billion merger.
Federal Reserve interest rate decision
The other major catalyst for the VOO ETF this week will the next Federal Reserve interest rate decision on Wednesday.
Economists expect the bank to leave interest rates unchanged between 4.25% and 4.50% in this meeting. Officials will then maintain their wait-and-see approach and hint of just two cuts this year.
The Fed has come under pressure from Donald Trump, who believes that it should cut rates to 1%. He met with Jerome Powell last week at the Fed building, where he inspected the ongoing renovations.
In line with this, the US will publish key economic numbers, including the PCE inflation report on Thursday and nonfarm payrolls data on Friday. These numbers will influence the Fed meeting in September this year.
Trade war deadline
The other key catalyst for the VOO ETF is the upcoming August 1 deadline set by the Trump administration. Trump has threatened tariffs against most countries, which will take effect on August 1 if no deal is reached with the US.
The US has reached a deal with Japan that will see the country invest $500 billion in the US. All Japanese goods shipped to the US will be charged a 15% tariff.
EU’s Ursula von der Leyen will meet Donald Trump to engineer an elusive deal with the US. Such a deal will boost the VOO ETF stock later this week.
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