The Federal Reserve is set to release the minutes of its recent meeting, shedding light on the discussion around interest rates and inflation pressures. Despite indications from Fed Chair Jerome Powell that rates are likely to stay elevated, recent data showing lower-than-expected consumer price increases may prompt a reevaluation of this stance. Several Fed officials, including Atlanta Fed President Raphael Bostic and New York Fed President John Williams, are also scheduled to speak throughout the week. The economic calendar will feature reports on new and existing home sales, durable goods orders, and consumer sentiment, providing further insights into the state of the US economy.
Nvidia’s upcoming quarterly results carry significant weight for US stock markets and companies operating in the artificial intelligence space. Expectations for a substantial increase in revenue and profit signal the company’s pivotal role in driving AI technology forward. With revenue anticipated to soar to $24.8 billion and earnings per share projected to reach $5.57, Nvidia faces the pressure of meeting or exceeding these lofty expectations to support its soaring stock price momentum. The stock has already surged over 90% this year, solidifying its position as a major player in the AI industry.
PMI Data Releases
Key economies including the US, China, the euro zone, and the UK are all set to unveil their May PMI data, providing insights into the global economic landscape. Positive indicators from these reports are expected to reinforce the optimistic outlook for global growth. However, looming trade tensions, particularly between the US and China, pose a significant threat to this positive trajectory. With manufacturers in Germany already feeling the impact of shifting trade dynamics, heightened geopolitical uncertainties could further disrupt global trade and economic growth.
The UK’s upcoming release of April CPI data is anticipated to show a significant slowdown in the annual inflation rate, nearing the Bank of England’s target level of 2%. This deceleration in inflation could potentially pave the way for interest rate cuts, providing policymakers with the necessary impetus to stimulate economic growth. Ahead of the inflation data release, remarks from BoE Governor Andrew Bailey are expected to provide additional context on the economic outlook. The economic calendar will also feature April retail sales data, offering further insights into consumer spending behavior.
The Reserve Bank of New Zealand is poised to maintain its current interest rates at an upcoming meeting, reflecting the central bank’s cautious approach amidst persistent inflation and a sluggish economy. Despite initial monetary policy adjustments in response to the pandemic, the RBNZ’s conservative stance contrasts with expectations of rate cuts by other central banks. Market projections for future rate cuts highlight the diverging paths of major economies, with uncertainties around global trade tensions and economic recovery shaping the monetary policy decisions of central banks worldwide.