U.S. indexes finished the week mixed after declines sharply turned into gains on Friday. The end-week sentiment turnaround was supported by the absence of additional negative news from regional banks, a stronger-than-expected job market, and robust earnings reports.
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The Federal Reserve increased its key interest rate by 0.25% and dropped hawkish language from its policy outlook, signaling a possible pause at the next meeting in June. However, during the time until the next FOMC rate decision, markets will be watching the coming economic reports, which will help shape the expectations for the Federal Reserve’s next moves.
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.
» April’s NFIB Business Optimism Index – Tuesday, 05/09 – The report provides an indication of the health of small businesses in the U.S. and their estimates for the SME business environment. Small and Medium Enterprises (SMEs) account for roughly 50% of the private workforce and are responsible for about 45% of U.S. economic activity, thus their well-being is of high importance to the overall economy.
» April’s CPI and Core CPI – Wednesday, 05/10 – The report on consumer price increases will be the focus of everyone’s attention, as economists will try to gauge whether the stronger-than-expected job market added to inflation’s stickiness.
» May’s Michigan Consumer Sentiment Index (preliminary reading) – Friday, 05/12 – The report will shed some light on consumer estimates of the economic conditions, as well as the outlook. Consumer vigor can result in more spending, leading to an even more robust labor market and a possible increase in inflation, which may influence the Fed to become more hawkish.
