Terry Lane
5 min read
In This Article:
There's a lot on the domestic calendar this week. But investors and the world are watching global affairs, too.
Fighting between Iran and Israel intensified over the weekend, with people dying in both countries and Iran reportedly pulling out of planned talks with the U.S. Recent developments in the Middle East not only heighten concerns about the path forward for commodities and other financial markets but stability in the region and beyond.
Meanwhile, several market-driving events are due in the coming days. The Federal Reserve's interest rate decision, consumer spending data, and possible news on President Donald Trump's tariffs headline the week. Thursday's Juneteenth holiday will mean a break from trading.
The Fed will hand down another decision on interest rates this week, with a decision scheduled for Wednesday. The coming weekend could see Tesla providing a significant update on the direction of the electric vehicle maker.
Did consumers in May continue to prop up the economy? Tuesday's U.S. retail sales will make it clear whether strong spending levels continued, while housing construction data will provide insight into whether builders are catching up with lagging inventory levels. Investors will continue to watch for trade developments as negotiations continue between U.S. officials and key trading partners.
It’s a light week for corporate earnings, highlighted by expected reports from homebuilder Lennar, accounting firm Accenture, grocery chain Kroger, and online used car seller CarMax.
Read to the bottom for our calendar of key events—and one more thing.
Fed officials have said they are keeping rates steady amid a strong labor market as they monitor inflation data for signs that Trump’s tariffs are driving up prices.
But the pressure is on the Federal Reserve after May inflation data came in lower than economists expected. Despite comments from President Donald Trump urging the Fed to make a one-point cut, investors don't expect the central bank to take action when its two-day meeting concludes on Wednesday.
The CME FedWatch Tool, which measures fed funds futures to determine the path of interest rates, indicates that traders overwhelmingly believe that Fed will keep rates at their current levels in June. They also don't expect the central bank to move rates at its late July meeting.
After the meeting concludes on Wednesday, Fed Chair Jerome Powell will provide more insight into the central bank’s view on the economy and interest rates when he takes media questions.
