How Things Stand in the Market as of Sunday, June 9th, 2024

Good morning, traders & investors!

The Nasdaq and S&P 500 pushed higher last week, but the breadth of stocks moving higher thinned, and some leaders saw their breakouts stall, possibly due to next week being chock full of potentially market-moving news. Apple’s annual Worldwide Developers Conference starts Monday. The iPhone giant is expected to make a long-awaited push into artificial intelligence with CEO Tim Cook giving a keynote address at 1 p.m. ET. Apple is expected to roll out in-device generative AI tools for the iPhone, iPad and other devices. Also next week is the two-day Fed meeting ending Wednesday with a policy statement at 2 p.m. ET followed by Fed chief Jerome Powell at 2:30 p.m. Though no action is expected, the Fed’s latest interest rate projections via an updated “dot plot” will be closely watched. In March, Fed policymakers narrowly favored three cuts in 2024, with hawks favoring two. This time, dovish officials may back two Fed rate cuts, with hawks at one or zero.

Also, look for Wednesday morning’s CPI inflation report followed by Thursday’s producer price index. While various elements of both inflation gauges could be positive, barring something unforeseen, they’re not likely to be positive enough for the Fed to project a near-term rate cut. Finally, look for three potentially market-moving earnings releases this week—all of which do business in the AI arena, and thus, could affect the entire market. These include Oracle (ORCL) Tuesday evening, Broadcom (AVGO) Wednesday evening, and Adobe (ADBE) Thursday evening