Major Economic Data and Events to Monitor in the Upcoming Week

key events

Nvidia (NASDAQ:NVDA) reported promising earnings, which initially boosted market momentum before it recalibrated based on emerging data. The release of the FOMC meeting minutes further intensified market volatility during the latter half of last week. Despite these fluctuations, the SPY managed to end the week marginally positive.

The upcoming week holds several : additional earnings reports, a U.S. bank holiday, consumer confidence data, and inflation figures.

Significant Market Events to Monitor This Week

  1. Earnings Reports

Earnings season continues, with Costco (NASDAQ:COST) standing out as the most notable company reporting this week. Costco’s performance, as one of the largest retailers in the U.S., offers insights into consumer spending patterns. Salesforce (NYSE:CRM) will also release its earnings, which traders closely monitor. Both companies’ earnings and guidance will be crucial in shaping market movements, particularly since many stocks have experienced post-earnings declines due to weak guidance.

  1. Bank Holiday

Monday is Memorial Day in the U.S., resulting in the closure of banks and most markets. Futures trading will be limited to half a day. This holiday may impact trading volumes on Tuesday as financial institutions adjust their positions.

  1. Consumer Confidence

The Consumer Confidence Index will be released on Tuesday at 10 a.m. Eastern. Given the current emphasis on inflation, this data has the potential to significantly impact the market. A lower-than-expected confidence level could boost hopes for rate cuts, potentially boosting the market. Conversely, higher-than-expected confidence could lead to a sell-off due to concerns about persistent inflation and delayed rate cuts.

  1. Pending Home Sales

Housing market data continues to influence the market. Last week’s miss in new home sales impacted the market, and this week’s pending home sales report, expected on Thursday, could have a similar effect. A 0.6% contraction is anticipated. A miss could trigger further selling, while better-than-expected data might lead to a market rally.

  1. Core PCE

The Fed’s preferred inflation measure, Core PCE, will be released on Friday. This report is critical given the recent inflation concerns. A higher-than-expected PCE could signal that inflation remains unchecked, leading to market volatility. Conversely, an in-line or lower-than-expected PCE could fuel a market rally on hopes of positive news regarding interest rates.

Stay informed about these events as they unfold, as each has the potential to significantly shape market sentiment and direction.