U.S. stocks rise in May; focus shifts to Fed and jobs report amid strong tech gains and positive inflation data.
In Short:
U.S. stocks ended May positively, with the S&P 500 up 6% mainly due to technology shares, while upcoming economic reports and Fed Chair Jerome Powell’s speech are anticipated to influence market expectations. Key data releases and earnings reports are scheduled throughout the week, with no rate cuts expected until September amid ongoing uncertainties.
U.S. stocks closed May with significant gains, as the S&P 500 rose by approximately 6%, driven mainly by technology and AI shares following Nvidia’s strong performance.
Inflation data showed unexpected improvement, supporting the Federal Reserve’s current policy position. The upcoming week will shift attention to labour market indicators and commentary from the Fed.
Fed Chair Jerome Powell is scheduled to speak on Monday, and the jobs report for May will be released on Friday. This report will offer crucial insights regarding hiring trends, wage pressures, and policy expectations as summer approaches.
Economic events
On June 2, economic events include the ISM Manufacturing PMI and Powell’s speech, along with earnings reports from Campbell Soup, Science Applications, and Credo Tech.
On June 3, the JOLTS Job Openings data will be released, with earnings reported from companies including Dollar General and NIO.
June 4 will feature the ADP Employment Change and the ISM Services PMI, alongside earnings from Dollar Tree and MongoDB, among others.
On June 5, Initial Jobless Claims data is anticipated, with earnings results from Brown-Forman, Lululemon, and others due after hours.
June 6 will see the release of Average Hourly Earnings, Nonfarm Payrolls, and the Unemployment Rate, accompanied by an earnings report from ABM Industries.
Powell’s comments this week may clarify the Fed’s stance, with markets generally expecting no rate cuts until September as uncertainties around tariffs and inflation persist.
