Most major U.S. indexes finished the week with gains, lifted by the rally in Nvidia (NVDA) and other AI-related chipmakers that propelled the technology sector’s stocks and the broad market.
This week the markets will be watching for the closure of the debt-ceiling saga, with significant progress in negotiations announced yesterday. If the threat of a default is lifted, the attention of investors and the Fed will then revert to the incoming economic data. They will use it to gauge whether the rate-hike pause in June is warranted or whether the policymakers should proceed with monetary tightening.
Here are three economic events that could affect your portfolio this week. For a full listing of all upcoming economic events, check out the TipRanks Economic Calendar.
» May’s Conference Board Consumer Confidence Index – Tuesday, 05/30 – the measure captures individuals’ confidence level in economic activity, which directly translates into consumer spending numbers. Thus, a higher-than-expected confidence reading would portend higher spending in the month ahead, adding to inflationary pressures and contradicting the Federal Reserve’s inflation-fighting measures applied up until now.
» May’s ISM Manufacturing PMI – Thursday, 06/01 – this report, issued by the Institute for Supply Management, provides a reliable outlook on the state of the U.S. manufacturing sector; it serves as a leading indicator of the near-future changes in the economic cycle. Stronger-than-anticipated PMI numbers might signify that the economy remains hotter than the Fed would need to bring down inflation, strengthening its case for continued monetary tightening.
» May’s Nonfarm Payrolls and Unemployment Rate – Friday, 06/02 – the outcome of the jobs report will be critical for the Federal Reserve’s decision on its next move in the June meeting. The latest data on jobless claims, consumer spending, and PCE inflation have been stronger than expected; if the job reports confirm continued strength, the anticipation of a pause in the interest-rate hikes in June is all but voided.