What will drive the markets this week?
Wall Street stocks ended slightly down on Friday amid turbulent trading following unexpectedly strong U.S. jobs data. This data highlighted a robust economy but sparked concerns that the Federal Reserve might delay cutting interest rates longer than anticipated by many investors. Over the week, the S&P 500 climbed 1.32%, the Nasdaq advanced 2.38%, and the Dow increased by 0.29%.
European stocks dropped on Friday, especially in rate-sensitive sectors such as real estate and utilities, after stronger-than-expected U.S. jobs data heightened concerns that the Federal Reserve would not lower interest rates soon. The STOXX 600 index closed down 0.2%, although it achieved its first weekly gain in three weeks.
Asia-Pacific markets were mixed on Friday as investors analyzed economic data from China and household spending figures from Japan, while also considering the European Central Bank’s rate cut.
This week, the Federal Reserve is not expected to change interest rates during its meeting, but the session will likely provide clues about the central bank’s plans. Investors will be keenly analyzing the projections data and comments from Chair Jerome Powell. Additionally, the Consumer Price Index (CPI) report will be closely watched for indications of whether inflationary pressures are continuing to decrease.
Apple (AAPL) is hosting its annual developers conference, where it is anticipated to reveal new products incorporating AI technology. On Thursday, Tesla (TSLA) shareholders are set to vote on a compensation package for CEO Elon Musk, valued at nearly $56 billion.
Meanwhile, companies with a significant focus on artificial intelligence, such as Oracle (ORCL), Broadcom (AVGO), and Adobe (ADBE), are scheduled to report their earnings. Tesla’s shareholders will also decide on Elon Musk’s $56 billion compensation package during their annual meeting on Thursday.
Events expected to move the markets this week
Monday, June 10
- Apple Worldwide Developers Conference begins
Tuesday, June 11
- NFIB small business optimism (May)
- Federal Open Market Committee (FOMC) meeting begins
- Oracle releases earnings
Wednesday, June 12
- Consumer Price Index (May)
- U.S. Treasury Statement (May)
- Federal Reserve interest rate decision
- Federal Reserve Chair Jerome Powell’s press conference
- Broadcom and Dave & Buster’s Entertainment (PLAY) release earnings
Thursday, June 13
- Producer Price Index (PPI) (May)
- Initial jobless claims (Week ending June 8)
- Treasury Secretary Janet Yellen and New York Fed President John C. Williams deliver remarks
- Adobe releases earnings
- Tesla annual shareholder meeting
Friday, June 14
- Import/export prices (May)
- Consumer sentiment - preliminary (June)
- Chicago Fed President Austan Goolsbee delivers remarks