What to expect in the markets this week.

Key takeaways

  • The Federal Reserve is expected to hold interest rates steady this week, focusing on the timing of possible cuts and officials' projections for the pace of the economy.
  • The Consumer Price Index (CPI) report will show whether inflation continues after heating up earlier this year.
  • Apple's big developer conference could see the tech giant unveil AI features while Tesla shareholders will vote on CEO Elon Musk's nearly $56 billion salary.
  • Earnings from Oracle, Broadcom, and Adobe could indicate demand for artificial intelligence, while Apple will likely highlight its AI offerings at its annual developers conference.
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The outcome of this week's Federal Reserve meeting is unlikely to be a change in interest rates, but there is likely to be a shift in where the central bank is headed, as investors digest data on projections along with comments from Chair Jerome Powell. Market watchers will also look to the Consumer Price Index (CPI) report for indications of whether price pressures are continuing to ease.

Apple ( AAPL ) will hold its annual developers conference, where it is expected to unveil new products that use AI technology. And Tesla ( TSLA ) shareholders will vote Thursday to approve a roughly $56 billion pay package for CEO Elon Musk.

Meanwhile, several companies focused on artificial intelligence (AI), including Oracle ( ORCL ), Broadcom ( AVGO ) and Adobe ( ADBE ), are also reporting earnings. Also, Tesla ( TSLA ) shareholders will determine the fate of Elon Musk's $56 billion pay package at their annual meeting on Thursday.

Monday, June 10

  • The Apple Worldwide Developers Conference is starting.

Tuesday, June 11

  • NFIB Small Business Hope (May)
  • The Federal Open Market Committee (FOMC) is meeting.
  • Oracle releases earnings.

Wednesday, June 12

  • Consumer Price Index (May)
  • US Treasury Statement (May)
  • Federal Reserve Interest Rate Decision
  • Federal Reserve Chair Jerome Powell's press conference
  • Broadcom and Dave & Buster's Entertainment (PLAY) release revenue

Thursday, June 13

  • Producer Price Index (PPI) (May)
  • Initial Jobless Claims (Week Ending June 8)
  • Treasury Secretary Janet Yellen and New York Fed President John C. Williams deliver remarks.
  • Adobe releases revenue.
  • Tesla Annual Shareholder Meeting

Friday, June 14

  • Import/Export Prices (May)
  • Consumer Sentiment – Early (June)
  • Chicago Fed President Austin Golsby delivers remarks.

Investors watch Fed meeting, May CPI inflation data

While the Bank of Canada and European Central Bank cut rates last week, the US Federal Reserve is not expected to meet this week.

On Wednesday, the central bank will announce its interest rate decision, and is expected to keep rates at the current 5.25%-5.5% level. However, market watchers should get plenty of information this week when the Fed may proceed with its rate cuts.

The Federal Reserve's Monetary Policy Committee will also release a summary of its economic projections. The forecast includes a closely watched “dot plot” that shows Federal Open Market Committee (FOMC) member projections on the path of interest rates.

Wednesday will be a busy day for economic data, with the release of the Consumer Price Index (CPI) for May coming in the morning ahead of the Federal Reserve's interest rate announcement.

Market watchers will be poring over the latest print of the CPI inflation report after April data saw inflation fall to 3.4%. The report has given investors and consumers hope that prices may be starting to cool after the run-up earlier this year. Fed officials have said they need to see more data showing cooling prices before cutting interest rates.

On Thursday, the producer price index (PPI) will show the path of inflation for wholesalers, which is sometimes seen as a harbinger of consumer price pressures. Investors will also get consumer sentiment data on Friday, which will offer more insight into spending trends and inflation expectations.

Apple's big conference, Tesla's shareholder vote

Two leading tech companies will be in the spotlight this week, with Apple unveiling several new AI-powered features, and Tesla holding its annual shareholder meeting.

Apple is likely to highlight new AI capabilities at its annual Worldwide Developers Conference, a five-day event starting Monday where the tech giant will unveil new features and products.

This year, new generative AI features are expected to debut in Apple's new operating system as well as a host of products like iMessage and Safari. Apple may also pay attention to recent reports of partnerships with rival Microsoft ( MSFT ) backed ChatGPT maker OpenAI, and Alphabet's ( GOOGL ) Google.

On Thursday, shareholders at Tesla's annual meeting will vote on several items, most notably a $55.8 billion pay package for CEO Elon Musk, which comes after a Delaware judge ruled the package was excessive. . During the voting period, shareholders will also be asked whether the company should re-incorporate in Texas, and to re-elect two board members.

AI Firms Lead Limited Earnings Calendar

Oracle delivers results on Tuesday, as the database software and cloud computing firm looks to improve on last quarter's earnings, after it beat expectations for a higher profit on rising consumer demand for its AI products. .

Semiconductor designer Broadcom is another company trying to show its AI business is growing, with analysts forecasting a rise in quarterly revenue when it reports earnings on Wednesday.

Another company highlighting its AI offerings is Adobe, which reports on Thursday. The company reported an 11 percent increase in revenue in its last quarterly report, while also beating its estimates for the current quarter.

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