📊 Market Overview
The S&P 500 and Nasdaq each rose 0.2% on Friday, finishing the week up 1.8% and 2.6% respectively, while the Dow climbed 0.7% Friday for a 1.5% weekly gain. The rally was driven by investors digesting mixed inflation and growth data ahead of a packed week of catalysts. The event to watch today: Fed Chair Jerome Powell’s upcoming speech, which could signal the future direction of interest rates.
📊 Market Snapshot
Fed Chair Powell speaks this week, and his tone on interest rates could decide whether this rally keeps going or stalls out — so stay alert.
📈 The Big Picture
Two big forces are pulling markets in opposite directions right now. Inflation is still sticky — the PCE index (a key measure of consumer prices that the Fed watches closely) rose 0.4% in April — while economic growth slowed to just 1.6% in Q1. Chris Zaccarelli of Northlight Asset Management warns that rising inflation paired with slowing growth is “exactly what the market doesn’t want to see.”
Meanwhile, Fed Chair Jerome Powell is set to deliver a speech that could move stocks, bonds, and currencies. If he sounds hawkish (meaning he leans toward keeping rates high to fight inflation), expect tech and growth stocks to take a hit. If he hints at easing up, markets could rally. On the jobs front, Friday’s employment report is expected to show 93,000 jobs added in May — a number that could shape the Fed’s next move and your portfolio’s direction.
📖 Term of the Day
PCE Index (Personal Consumption Expenditures): A measure of how much prices are rising for things everyday consumers buy — it’s the Federal Reserve’s favorite inflation gauge.
Why you care today: The PCE rose 0.4% in April, signaling inflation is still stubbornly high, which could push the Fed to keep interest rates elevated longer.
💼 Watchlist: 3 Stocks to Know Today
Tandem Diabetes Care (TNDM) — “The Comeback Kid”
Wells Fargo upgraded this diabetes device maker from Equal Weight to Overweight and raised its price target from $21 to $27. The company rebuilt its insurance coverage from 0% to about 40% in a single quarter, with expectations to hit 70–80% soon.
MGM Resorts (MGM) — “The Buyout Buzz”
MGM shares surged 12.93% in pre-market after reports that People Inc. is preparing a buyout offer at $48.30 per share. Acquisition offers like this can cause big short-term price swings, so watch for updates before jumping in.
Intel (INTC) — “The Caution Sign”
Intel dropped 5.91% in pre-market despite news of its upcoming AI data center chip called Crescent Island. Investors appear worried about intense competition in the chip space and whether Intel can catch up to rivals.
💬 Esther’s Take
