📊 Market Overview
The S&P 500 dropped 2.6%, the Dow lost 1.4%, and the Nasdaq plunged 4.2% on Friday. The sell-off was driven by expectations of another interest rate hike after a surprisingly strong jobs report showed 172,000 new jobs added versus the 88,000 forecast. The numbers to watch this week: Wednesday’s CPI (Consumer Price Index) and Thursday’s PPI (Producer Price Index) inflation reports, which could determine whether markets stabilize or fall further.
📊 Market Snapshot
This week’s inflation data on Wednesday and Thursday will likely decide whether last week’s sell-off gets worse or starts to reverse — so avoid making big moves before then.
📈 The Big Picture
The economy is running hot, and that’s actually the problem right now. A blowout jobs report on Friday convinced Goldman Sachs that the Federal Reserve (the central bank that controls interest rates) won’t cut rates at all this year. The market is now pricing in one more rate hike, and Goldman raised the probability of “modest increases” from 10% to 20%. When rates stay high or go higher, borrowing costs rise for companies, which tends to push stock prices down — especially for high-growth tech stocks.
All eyes turn to Wednesday’s CPI report. Economists expect inflation jumped to 4.2% in May, up from 3.8% in April. JPMorgan estimates that a hotter-than-expected reading could drag the S&P 500 down another 2–3%, while a cooler number could spark a relief rally. On Friday, Elon Musk’s SpaceX will IPO (list its shares publicly for the first time) on the Nasdaq at $135 per share, valuing the company at roughly $1.8 trillion — the largest IPO ever. If you own broad market ETFs, how inflation data lands this week matters far more to your portfolio than any single stock event.
📖 Term of the Day
CPI (Consumer Price Index): A monthly government report that measures how much everyday prices — groceries, gas, rent — have changed, and is the most-watched gauge of inflation. Why you care today: Wednesday’s CPI print is expected to show inflation accelerating to 4.2%, and a number above that could push stocks down sharply while making another rate hike more likely.
💼 Watchlist: 3 Stocks to Know Today
Crocs (CROX) — “The Comeback Kid”
Analyst firm Baird upgraded Crocs from Neutral to Outperform (meaning they now expect it to beat the market) and raised their price target from $115 to $150. The reason: both the Crocs and HEYDUDE brands are showing sustainable improvement in North America, with healthier revenue growth expected in the second half of 2026.
Oracle (ORCL) — “The AI Report Card”
Oracle releases its quarterly earnings on Wednesday, and investors want to see whether its cloud and AI businesses are growing fast enough to justify a 12% stock gain this year. The catch: the company is facing high costs to expand its data center capacity, so profits could disappoint even if revenue looks solid.
Nurix Therapeutics (NRIX) — “The Biotech Jackpot”
Nurix shares surged nearly 15% in pre-market trading after pharma giant Roche agreed to pay up to $2.3 billion for the rights to Nurix’s experimental blood cancer drug. That deal includes $700 million upfront — a massive vote of confidence in a small biotech company.
💬 Esther’s Take
