Stocks surged again last week, with the Dow Jones Industrial Average surpassing 40,000 for the first time. A favorable CPI report and weaker retail sales data fueled speculation of a cooling economy, raising expectations for Fed rate cuts in the coming months.
The ongoing robust earnings season further bolstered investor confidence, with Q1 EPS growth averaging 7.3%, the second-highest rate in two years.
This week, investors will focus on the Federal Reserve's meeting minutes and Nvidia's earnings report, a key driver of the S&P 500's recent growth. While the Fed's minutes may not unveil surprises, they could offer clarity on the timing of potential rate cuts and the level of consensus among policymakers.
🛢 EIA Crude Oil Stocks Change — May 22, at 17:30 GMT+3
This is the first release of the week and it reports on changes in U.S. crude oil inventories. The EIA Crude Oil Stocks Change is a key indicator that influences the prices of Brent and WTI crude oil. Particularly in the current climate, where oil prices are fluctuating sharply — hitting record highs one day and dropping the next due to potential Fed rate cuts — this report holds significant importance.
The expected inventory change is 0.462 million barrels, compared to the previous figure of -2.508 million barrels, which had temporarily driven up oil prices.
🇪🇺 S&P Global Composite PMI — May 23, at 12:00 GMT+3
This upcoming release of the S&P Global Composite PMI for Europe is highly anticipated. The index is expected to remain steady at 51.7, matching the previous reading. However, any deviation from this forecast could lead to fluctuations in the EUR/USD exchange rate and impact the DAX30 index.
As a key indicator of overall economic health, the Composite PMI provides crucial insights into business conditions across the Eurozone.
🇺🇸 S&P Global Manufacturing PMI — May 23, at 16:45 GMT+3
This report provides a comprehensive overview of business conditions in the manufacturing sector, which is a substantial contributor to the total GDP. The Manufacturing PMI is widely regarded as a key indicator of business health and the overall economic environment in the U.S. Special attention should be paid to this metric, as it has the potential to show growth.
Also, major stock indices such as the Nasdaq and Dow Jones are rising, highlighting the importance of closely monitoring these developments. Potential impacts may be observed on the US Dollar and US Stocks.
🇺🇸 S&P Global Services PMI — May 23, at 16:45 GMT+3
This report provides an in-depth analysis of business conditions in the services sector, which accounts for over 70% of the total U.S. GDP. As leading economic indicators, PMI indices are essential tools for economists and analysts, offering timely insights into shifting economic trends. Typically, the direction and rate of change in PMIs precede broader economic changes, making them crucial for forecasting the overall economic outlook.
🇺🇸 UoM 5-year Consumer Inflation Expectations — May 24, at 12:00 GMT+3
This report presents the results of a monthly survey on consumer confidence levels in the United States. Consumer confidence significantly influences consumer spending, which accounts for approximately 70% of the U.S. GDP. The inflation expectations index, a key component in the Federal Reserve's calculations for the Index of Inflation Expectations, is especially important ahead of the upcoming Fed decision and the potential rate cut from the current 5.50%.
That's it for this week! 👋
