What will drive the markets this week?
The Dow Jones Industrial Average closed above the 40,000 mark for the first time on Friday, while other major indexes also posted weekly gains. This surge was fueled by data supporting expectations of interest rate cuts by the Federal Reserve later this year. The benchmark S&P 500 edged higher after paring losses, while the Nasdaq fell. However, both indexes marked a fourth consecutive week of gains. The Dow extended its winning streak to five weeks. Specifically, the Dow Jones Industrial Average climbed 134.21 points, or 0.34%, to 40,003.59. The S&P 500 added 6.17 points, or 0.12%, to 5,303.27, and the Nasdaq Composite dropped 12.35 points, or 0.07%, to 16,685.97.
The pan-European STOXX 600 dipped 0.1%, with the real estate sector among the top decliners due to rising eurozone bond yields. Azelis dropped 13%, marking its worst day on record, after major shareholders EQT Partners and PSP Investments sold shares. Nibe fell 11.9%, bottoming out the STOXX after Citigroup downgraded the Swedish heat-pump maker to “neutral” from “buy”.
In Asia, stocks in China and Hong Kong rose after China’s central bank announced measures to stimulate the struggling property market. Mainland China’s CSI 300 index increased by 1% to close at 3,677.97, an eight-month high, while Hong Kong’s Hang Seng index also gained about 1%, driven by real estate stocks.
This week, Nvidia (NVDA), a prominent player in the artificial intelligence (AI) sector, is slated to release its earnings report after the market closes on Wednesday, potentially marking a key event of the week. The chipmaker is anticipated to showcase another robust quarter of earnings and revenue growth, driven by soaring demand for AI technology.
This week will also see financial updates from other tech firms, including cybersecurity company Palo Alto Networks (PANW) and cloud computing provider Snowflake (SNOW). Additionally, the spotlight will be on retail earnings, with Lowe’s (LOW), Target (TGT), Macy’s (M), Ross Stores (ROST), and Marshalls’ parent company TJX (TJX) set to announce their results before the long holiday weekend.
Also, minutes from the latest Federal Open Market Committee meeting and remarks from Federal Reserve officials may provide valuable insights into their perspectives on inflation.
Events expected to move the markets this week
Monday, May 20
- Atlanta Fed President Raphael Bostic and Fed Vice Chair Michael S. Barr deliver remarks
- Palo Alto Networks (PANW), Trip.com Group (TCOM), and Zoom Video Communications (ZM) report earnings
Tuesday, May 21
- Boston Fed President Susan M. Collins, Cleveland Fed President Loretta Mester, Atlanta Fed President Raphael Bostic, Richmond Fed President Tom Barkin, and New York Fed President John C. Williams deliver remarks
- Microsoft Build conference keynote address by CEO Satya Nadella
- Lowe’s (LOW), AutoZone (AZO), XPeng (XPEV), and Macy’s (M) report earnings
Wednesday, May 22
- Existing home sales (April)
- Minutes of May FOMC meeting
- Nvidia (NVDA), TJX (TJX), Target (TGT), Snowflake (SNOW), Toll Brothers (TOL), and Williams-Sonoma (WSM) report earnings
Thursday, May 23
- Initial jobless claims (Week ending May 11)
- S&P flash U.S. services PMI (May)
- S&P flash U.S. manufacturing PMI (May)
- New home sales (April)
- Federal balance sheet
- Atlanta Fed President Raphael Bostic delivers remarks
- Intuit (INTU), Medtronic (MDT), Toronto-Dominion Bank (TD) and Ross Stores (ROST) deliver earnings
Friday, May 24
- Durable-goods orders (April)
- Consumer sentiment, final (May)
- Booz Allen Hamilton (BAH) reports earnings