Last week, Nvidia (NASDAQ:NVDA) soared past the $950 mark, leading the market higher. Federal Reserve Chair Jerome Powell’s testimony in the House was received positively, and the Non-Farm Payrolls report exceeded expectations. Despite this, the S&P 500 ended the week down approximately 0.2%.
This week, the US will begin Daylight Saving Time, and futures contracts will roll over to the June contract for quarterly contracts. Additionally, there is a significant amount of inflation data scheduled for release, and Friday marks the quarterly expiration for equities options.
Here are five key events to monitor in the market this week:
Earnings Reports
Earnings reports remain important, though most of the major companies have already reported. This week, Dollar Tree (NYSE:DLTR) will report on Wednesday morning, followed by Dollar General (NYSE:DG) on Thursday morning. These reports can provide insights into the overall economy based on metrics such as traffic and sales.
CPI and Core CPI
On Tuesday at 8:30 AM, the Consumer Price Index (CPI) and Core CPI numbers will be released. These inflation figures are crucial, especially as many people are still feeling the impact of higher prices. The market’s reaction will depend on whether the numbers come in lower or higher than expected.
Bond Auctions
A 10-year bond auction will take place on Tuesday, followed by a 30-year bond auction on Wednesday, both at 1:01 PM Eastern. These auctions can indicate investor confidence in the economy; strong auctions suggest confidence, while poor auctions may indicate concerns.
PPI and Core PPI
Producer Price Index (PPI) and Core PPI numbers are due on Thursday before the market opens. Like CPI, these figures measure inflation, but from the producers’ perspective. A higher-than-expected PPI could lead to selling on fears of reduced rate cuts, while a lower-than-expected figure could result in a market rally.
Retail Sales
Also on Thursday before the market opens, Retail Sales figures will be released. This data provides insights into consumer spending patterns. A decrease in retail sales, even with higher prices, could indicate a slowdown in purchasing, which may be attributed to higher interest rates or prices.
These events will likely influence market movements and investor sentiment throughout the week.
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