When the stock market opens on Sunday evening, investors will be keeping an eye on Dow Jones futures, along with S&P 500 futures and Nasdaq futures. The upcoming week will be highlighted by Micron Technology (MU) earnings and the release of the Fed’s preferred inflation index.
The recent stock market rally led to weekly gains, with the S&P 500 and Nasdaq setting new all-time highs earlier in the week. However, there was some weakness towards the end of the week, especially among AI chip plays like Nvidia (NVDA), Broadcom (AVGO), and Taiwan Semiconductor (TSM). Micron stock, in particular, is facing scrutiny ahead of its earnings report on Wednesday.
In addition to Micron, companies like Carnival (CCL), FedEx (FDX), and Nike (NKE) are also reporting earnings this week, providing insight into the economy and consumer spending trends. On the tech front, Amazon.com (AMZN), Meta Platforms (META), and Nu Holdings (NU) are worth watching.
The focus will also be on the Commerce Department releasing the core PCE price index, the Fed’s preferred inflation gauge, on Friday. Expectations are for a moderate increase in May. Based on current market sentiment, there is a growing anticipation of a Fed rate cut in September and potentially more cuts in the future.
As investors navigate through the market uncertainties, it’s important to keep a close watch on leading stocks and sectors. While it may not be the best time to increase exposure to the market, there are opportunities for swing trades. Staying informed and being ready to exit positions if needed is crucial in volatile times.
