Nvidia (NASDAQ:NVDA) delivered strong earnings, boosting the market temporarily before it adjusted based on new data. The release of the FOMC meeting minutes added to the volatility in the latter half of last week. Despite these fluctuations, the SPY managed to close the week slightly positive.
In the coming week, we have several key events: additional earnings reports, a U.S. bank holiday, consumer confidence data, and inflation figures.
Key Market Events to Watch This Week
- Earnings Reports
Earnings season continues, with Costco (NASDAQ:COST) being the most notable company reporting this week. As one of the largest retailers in the U.S., Costco’s performance provides insights into consumer spending. Salesforce (NYSE:CRM) is also reporting, and its results are closely watched by traders. Both companies’ earnings and guidance will be critical for market movements, especially since many stocks have declined post-earnings due to weak guidance.
- Bank Holiday
Monday marks Memorial Day in the U.S., with banks and most markets closed. Futures trading will be limited to a half-day. This holiday could affect trading volumes on Tuesday as financial institutions adjust their positions.
- Consumer Confidence
On Tuesday at 10 a.m. Eastern, the Consumer Confidence Index will be released. Given the current focus on inflation, this data has the potential to significantly impact the market. A lower-than-expected confidence level could spur hopes of 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.
- Pending Home Sales
Housing market data continues to influence the market. Last week’s miss in new home sales moved the market, and this week’s pending home sales report, expected on Thursday, could do the same. A 0.6% contraction is anticipated. A miss could trigger further selling, while better-than-expected data might lead to a market rally.
- Core PCE
On Friday, the Fed’s preferred inflation measure, Core PCE, will be released. This report is crucial given the recent inflation concerns. A higher-than-expected PCE could signal that inflation remains uncontrolled, 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 tuned for these events as they unfold, as each has the potential to significantly influence market sentiment and direction.
Featured Image: Freepik © creativeart
