The Market News Today: Fed to Hold Rates Steady; CPI Predicted to Cool

Fed Meeting and CPI Data in Focus This Week

Investors are closely watching the U.S. Federal Reserve’s meeting this week, expecting no change in the current 5.25%-5.5% interest rate. The May Consumer Price Index (CPI) will be released Wednesday morning, followed by the Fed’s interest rate decision. Thursday’s Producer Price Index (PPI) and Friday’s consumer sentiment data will offer further insights into inflation and economic trends, influencing future Fed policy decisions.

AI Firms Dominate This Week’s Earnings Reports

Oracle, Broadcom, and Adobe lead this week’s limited earnings calendar, each spotlighting their AI initiatives. Oracle reports Tuesday, aiming to surpass last quarter’s earnings boosted by AI product demand. Broadcom reports Wednesday, with analysts expecting a revenue increase driven by its AI business. Adobe, reporting Thursday, previously saw an 11% revenue jump but has lowered current quarter projections.

Apple’s AI Unveilings, Tesla Shareholder Votes Highlight Week

Apple’s Worldwide Developers Conference kicks off Monday, showcasing new AI features and a new operating system across products like iMessage and Safari. The tech giant may also address partnerships with Microsoft-backed OpenAI and Google. Meanwhile, Tesla’s annual shareholder meeting on Thursday will vote on CEO Elon Musk’s $55.8 billion pay package, a possible reincorporation in Texas, and re-electing two board members. Both events will keep tech enthusiasts and investors focused on these leading companies.Top of Form

Fed Rate Decision and May Inflation Figures Awaited by US Stock Market Traders

U.S. stock futures dipped early Monday after a strong week, with traders eyeing the Federal Reserve’s rate decision and May inflation data. The S&P 500 hit a record high, gaining 1.32%, while the Dow rose 0.29% and the Nasdaq climbed 2.38%. Nvidia surged 10%, surpassing a $3 trillion market cap. Wednesday’s Fed rate decision and CPI release are crucial, especially following robust job data suggesting the central bank might delay rate cuts.

Oil Prices Slip, Gold Steady Amid Strong Dollar and Fed Watch

Oil prices fell for a second session due to a stronger dollar following robust U.S. job data. Brent crude futures dropped to $79.58 and WTI to $75.49 per barrel. The stronger dollar, driven by lower expectations for interest rate cuts, makes oil more expensive for other currency holders. Meanwhile, gold remained stable, supported by its safe-haven appeal amid global economic uncertainties, including French political tensions and upcoming central bank meetings. Analysts anticipate summer demand to tighten oil supply, potentially raising prices later in 2024.