This week in financial markets promises to be eventful with the CPI release and the Fed meeting poised to influence market directions significantly.
Meanwhile, Apple's WWDC and Nvidia's stock split are key corporate events to watch.
“The fireworks may come early this week as Wednesday will provide a double feature of potentially market moving events,” writes Jay Woods, chief global strategist at Freedom Capital Markets (NASDAQ:FRHC).
“The market hasn’t experienced major fireworks in the form of a -2% drawdown in a single trading session in 328 days. This is the third largest streak since 1995.”
CPI and FOMC: A Double Feature on Wednesday
The morning will kick off with the release of the Consumer Price Index (CPI). While generally CPI surprises have been a major source of market volatility, this release coincides with the Federal Reserve's latest meeting, where chair Jerome Powell’s comments will be closely scrutinized.
Analysts expect the year-over-year CPI to remain stable at 3.4%, according to Woods. A dip towards the 3% mark could bolster arguments for rate cuts later this year.
Apple WWDC: AI Innovations on the Horizon?
Next week also features Apple's Worldwide Developer Conference (WWDC), where investors are eager for significant AI-related announcements.
“Was Siri ever that product you couldn’t live without? Clearly the answer is no,” writes Woods. “In fact, it was more of an annoyance when it accidentally popped up because you said the word seriously oddly. This week there’s hope that there will be a Siri upgrade with AI interaction.”
Investors also expect new IOS 18 enhancements, Woods added.
Apple's stock, up only 2% year-to-date, remains near its all-time highs. Investors are watching to see if WWDC can propel the stock higher or if it will continue to trail behind other mega-cap peers.
Nvidia Stock Split and Market Position
Nvidia's 10-for-1 stock split takes effect this week, making it more affordable for individual investors. Historically, such splits have had a positive impact on stock liquidity and price.
Despite a slight dip, Nvidia recently overtook Apple as the world's second-largest company by market cap, briefly surpassing the $3 trillion mark. Its next target: Microsoft's record $3.15 trillion valuation.
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