The Schwab US Dividend Equity ETF (SCHD) and the JPMorgan Equity Premium Income ETF (JEPI) have rebounded in the past few months, mirroring the performance of the broader stock market.
JEPI has jumped by over 17% from its lowest point this year, and is hovering near to its all-time high of $57. Similarly, the SCHD ETF rose to $27, much higher than the year-to-date low of $23. This article identifies some of the top catalysts for the two funds this week.
Jerome Powell speech
One of the top catalysts for the JEPI, SCHD, and other US stocks will come out on Tuesday when Jerome Powell, the Fed Chair, delivers a statement.
This will be a notable statement because it comes a week after the US published strong inflation and retail sales data, justifying the Federal Reserve’s caution.
The headline consumer inflation report showed that the headline consumer CPI rose to 2.7% in June, while the core CPI jumped to 2.9% during the month. These numbers moved further away from the Fed’s target of 2.0%.
Another report showed that US retail sales rose in June after falling for two consecutive months. These numbers, together with the solid earnings, showed that the economy was doing well.
Powell’s speech comes a few days after Christopher Waller, another Fed official insisted that the bank should cut interest rates next week.
Further, it comes as Donald Trump continues to push for rate cuts. As such, there is still a slim chance that the president will attempt to remove him from office, which will hurt the stock market.
JEPI and SCHD to react to earnings
The other key catalyst for JEPI and SCHD ETFs is that some of the biggest companies in their portfolio will publish their quarterly results this week.
Alphabet and Tesla will be the next Magnificent 7 companies to publish their results this week after Netflix. Analysts anticipate that Tesla’s results will be weak after its deliveries dropped during the quarter. Alphabet may report strong numbers because it is not exposed to tariffs.
The other Magnificent 7 companies, like Microsoft, Apple, Meta Platforms, and Amazon will publish their results next week. Other top companies to watch this week will be blue-chip names like Verizon, AT&T, GE Vernova, ServiceNow, Coca-Cola, and Blackstone.
Trade talks and ECB interest rate decision
The other notable catalyst for the JEPI and SCHD ETFs will be the ongoing trade negotiations between the US and other countries, especially the European Union
These talks will likely escalate in the next 10 days as Donald Trump’s August 1 deadline nears. Trump has pledged to impose substantial tariffs against other countries on August 1.
Countries, especially the European Union, are now working on contingency measures to reciprocate if Trump moves forward with his tariff threats.
A deal with some of these countries will be bullish for the SCHD, JEPI, and other exchange-traded funds this week.
The other minor catalyst for the funds are the statements from the European Central Bank (ECB), which will publish its interest rate decision on Thursday.
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