What will drive the markets this week?
U.S. stocks rebounded on Friday following sharp losses the previous day, buoyed by an improving consumer outlook on inflation. This rally propelled the Nasdaq to its fifth consecutive week of gains and a record closing high. For the week, the Dow fell 2.34%, while the S&P 500 inched up 0.03%, and the Nasdaq increased 1.41%.
European stocks closed lower on Friday and down for the week, as persistent U.S. price pressures and a recovering eurozone economy cast doubt on the likelihood of multiple interest rate cuts from major central banks this year.
In Asia Pacific, Hong Kong stocks led the losses on Friday following Wall Street’s overnight tumble due to rate concerns, while investors also digested Japan’s inflation data.
Inflation will be a key focus in the upcoming week, which is shortened by Memorial Day, as the Personal Consumption Expenditures (PCE) index is set to be released on Friday, indicating whether price pressures continued to ease in April. Markets will be closed on Monday for the Memorial Day holiday.
Investors will be paying close attention to tech earnings, with Salesforce (CRM) and Dell (DELL) expected to attract significant interest. The retail sector will also be in the spotlight, with Costco (COST) and Dollar General (DG) among the companies reporting this week.
Additionally, housing market data and consumer confidence reports are anticipated, and it’s the final week for Federal Reserve officials to make public comments before the blackout period leading up to their next meeting.
Events expected to move the markets this week
Monday, May 27
- Memorial Day holiday
Tuesday, May 28
- S&P Case-Shiller Home Price Index (March)
- Consumer Confidence (May)
- Cleveland Fed President Loretta Mester and Minneapolis Fed President Neel Kashkari deliver remarks
- Scotiabank (BNS) and Cava Group (CAVA) report earnings
Wednesday, May 29
- Federal Reserve Beige Book release
- New York Fed President John C. Williams delivers remarks
- Salesforce, BMO Financial Group (BMO), Agilent Technologies (A), HP (HPQ), Dick’s Sporting Goods (DKS), Abercrombie & Fitch (ANF), and Chewy (CHWY) report earnings
Thursday, May 30
- Initial jobless claims (Week ending May 25)
- Gross Domestic Product (GDP) - first revision (Q1)
- Pending Home Sales (April)
- New York Fed President John C. Williams delivers remarks
- Costco Wholesale, Royal Bank of Canada (RY), Dell Technologies, Marvell Technology (MRVL), and Dollar General report earnings
Friday, May 31
- Personal Consumption Expenditures (PCE) Index (April)
- Chicago Business Barometer (May)
- Final day before Federal Reserve blackout period
- BRP (DOOO) reports earnings