The market is awaiting data that would add to a series of positive forecasts and could ease Fed officials’ concerns about rate cuts this year. Traders expect the agency to begin cuts in September, according to the CME FedWatch tool.
Wall Street rises this Monday in advance of some economic data that will be published this week and that could be key in determining the timing of interest rate cuts by the Federal Reserve.
The content you want to access is exclusive to subscribers.
to subscribe I am already subscribed
In this context, the industrial average Dow Jones rises 0.9%, while the S&P 500 earn 0.3%. Meanwhile, the Nasdaq Compositee gives 0.2% dragged by the third day of falls for Nvidiawhich cuts 4.4%.
Market participants will eagerly await the May Personal Consumption Expenditure Price Index, the Fed’s preferred inflation gauge, due to be released on Friday. Data could show continued slowdown in inflation, which would be good news for the Fed and investors. Thursday’s gross domestic product data could also influence the decision on rate cuts.
Nvidia (NVDA) shares fall, extending a correction that began after it briefly became the world’s most valuable company last Tuesday. Chip decline could accelerate or reverse as AI beneficiary Micron (MU)report its quarterly results on Wednesday, the same day Nvidia will hold its annual shareholder meeting.
Most U.S. stocks rose on Friday, but semiconductor stocks fell, weighing on both the Nasdaq Composite and the S&P 500. The Dow Jones Industrial Average and the S&P gained last week, while the Nasdaq barely moved.
Wall Street: what the market analyzes
The macroeconomic front, as well as a renewed focus on the American political scene, could get more attention this week. Regarding the latter, US President Joe Biden and the presumptive Republican candidate donald trump They will have their first debate on Thursday night.
Nvidia.jpg
And then: inflation. The Personal Consumption Expenditure (PCE) Index will be published on Friday morning. This index contains the “core” PCE measure, which is the one most closely watched by the Federal Reserve.
Economists expect core PCE to have risen just 0.1% last month, which would be the slowest monthly increase since last November. Such an outcome would add to a series of recent positive data that could ease Fed policymakers’ concerns about rate cuts this year. Traders expect the Fed to begin cuts in September, according to the CME FedWatch tool.
